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Denver Accounting Firm Tips for Handling IRS Notices

November 12, 2020

You’ve filed a tax return on time and paid any owed amounts or may even be expecting to receive a refund. Months later you open the mailbox and immediately your heart sinks as your eyes fixate on a letter from the Internal Revenue Service (IRS) addressed to you. Quickly, you open it up and begin reading where a variety of information suddenly becomes available, depending on the cause of notice. Fortunately, there are steps to take even prior to opening the envelope when you receive one of these letters.

First, ensure the letter is legitimate. While a majority of these will be accurate notices, as the US Mail is how the IRS contacts taxpayers, any demanding immediate payment through a specific source - money order, credit card, etc. should raise some red flags. In addition, there is typically a method of response or action to be taken in a given timeframe should the notice be legitimate. Follow a few of these simple steps in order to ensure your situation is handled accordingly.

Don’t Panic

There are a number of different reasons an individual could receive an IRS notice and shouldn’t panic upon receipt of a letter. For taxpayers who have filed on time returns with due payments, there shouldn’t be any potential cause of concern about unpaid funds. Even if you haven’t submitted the full owed amount, know that there are multiple avenues for handling your situation.

Examine the Type

IRS notices may simply be clerical corrections, such as a change in your address from one return to the next. Even something as simple as spelling out the word STREET in an address as opposed to the abbreviation (ST) may trigger a change of address notice. Other forms could be issued if there is a change in the tax return itself or an error has been detected, in addition to the common notices for taxes owed.

Make A Plan

Once you have determined that the letter is both legitimate and to what it pertains, then a plan of action can begin to be developed. In the event there was an error or you apparently owe money unexpectedly, contacting your accountant is a great first step. Understanding that amounts can be disputed, especially if associated penalties and interest have been added, and that multiple options exist for paying any money owed, can make receiving such notice a slightly less stressful situation.

Respond Accordingly

Finally, check the timeline for an expected response and make certain that action is taken prior to this date. Responding accordingly and within the guidelines determined by the IRS can keep you in a positive position when dealing with whatever situation may have triggered receiving the original notice.

If you’ve received a notice and need assistance, let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for all of your filing questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing quality tax and payroll services, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!