THINGS TO KNOW IF YOU RECEIVE AN IRS NOTICE

Each year, the IRS sends millions of letters and notices to taxpayers for a variety of reasons. The state tax departments send millions more. Here are several things you should keep in mind about IRS and state tax notices - just in case one shows up in your mailbox.

1. Don't panic. We can help you deal with many of these letters simply and painlessly.
2. There are a number of reasons why you might receive a notice. Notices may request payment of taxes, notify you of changes to your account, or request additional information. The notice you receive normally covers a very specific issue about your tax return.
3. Each letter contains specific instructions on what you are being asked to do, such as pay an amount by a certain deadline or send further information.
4. If you receive a correction notice, you should compare it with the information on your return. We can help explain any differences.
5. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
6. If you do not agree with the correction that was made, it is important that you respond within the time allowed. We can help you prepare a written response, including any supporting documentation. It will generally take the IRS or state at least 30 days to respond.
7. It's important that you keep copies of any correspondence with your records.

(June 7, 2011)

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