IRS Notices—What to Do
By: Connie Holt, E.A., ATA, ATP
The Henssler Financial Group Position Paper

It is a moment any taxpayer dreads: Mail arrives from the IRS, but it is not a refund check. The IRS says, "Do not panic." Many of these letters can be dealt with simply and painlessly.

Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, to notify them of a change to their account, or to request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what to do to satisfy the inquiry. Most notices provide a phone number for you to call if you have questions.

Most correspondence can be handled without calling or visiting an IRS office if you follow the instructions in the letter or notice. However, if you have questions, call the telephone number in the upper right corner of the notice, or call the IRS at 1-800-829-1040. Have a copy of your tax return and the correspondence available when you call so your account can be readily accessed.

Before contacting the IRS, review the correspondence and compare it to the information on your return. If you agree with the correction to your account, no reply is necessary unless a payment is due. In that case, send the payment. 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 corner of the notice. Allow at least 30 days for a response.

Sometimes, the IRS will send a second letter. Perhaps the IRS sends you a notice requesting additional information or providing additional information to you. Be sure that you keep copies of all correspondence with your records.

For more information about IRS notices and bills, see IRS Publication 594, "Understanding the Collection Process." Information about penalties and interest charges is available in Publication 17, "Your Federal Income Tax." You can find these articles and more at the IRS website (www.irs.gov) by performing a search in the Forms and Publications section. Otherwise, you can call 1-800-TAX-FORM (1-800-829-3676) for more information on these topics.

The staff at The Henssler Financial Group Tax & Accounting Division is available to assist you with any IRS notices you receive. For additional information, please contact us at 770-428-4025.