You Received an IRS Notice. Now What?

Every year, the IRS sends millions of letters and notices to taxpayers throughout the year. And just because you receive a notice doesn’t mean you’re being audited or you have something to worry about it. But don’t take my word for it. Here is a list of things every taxpayer should know about IRS notices, straight from the IRS.

1. Don’t panic. Many of these letters can be dealt with simply and painlessly.
2. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.
3. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.
4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
5. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
6. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call.
8. It’s important that you keep copies of any correspondence with your records.

Avoid Phishing Scams – This final tip is not from the IRS, but we wanted to make sure you’re aware of potential dangers that can result from fake IRS notices or phishing scams. With this in mind, be wary of any email notices claiming to be from the IRS. As a rule, the IRS does not correspond with taxpayers through email, unless this form of communication has been agreed to in advance by the tax payer. Either way, no matter how legitimate the email appears, don’t click on anything or provide any information online. If you receive a notice and you’re not sure why, take a few minutes and call the IRS. It might seem like a hassle, but taking 10 minutes to be safe could save you months or even years of trouble trying to repair your credit because of a phishing scam.

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. Information about penalties and interest charges is available in Publication 17, Your Federal Income Tax for Individuals. Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

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