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Monday
Oct312011

(Forbes) Get A Tax Notice? Here's What To Do

Every year the IRS sends millions of letters and notices to taxpayers.  The increasingly web savvy IRS has released IRS Summertime Tax Tip 2011-22.  It’s worth a review, providing the agency’s tips on dealing with its own correspondence!  I’ve summarized and supplemented it here.
  1. Don’t Panic. Many letters and notices are simple and painless, merely saying what the IRS did, received, or has on file.  For more about IRS bills and Notices, see IRS Publication 594, The IRS Collection Process.
  2. Read Carefully.  Each letter or notice may request payment, notify you of a change or request additional information. If you receive a correction notice, compare it with your return.
  3. Need More Time? Often, the IRS can grant an extension of time to respond but you must ask.  If you ask, confirm it in writing.  In some cases, no extension is possible, such as the 90-day deadline to file in Tax Court after a Notice of Deficiency can’t be extended.  For more, see Ten Things To Know About Fighting An IRS Bill. Read more

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