As we come closer to the April tax deadline, you’ll start to see more and more people kicking their legs up as they wait for their tax refund. Regardless of your tax-completion status, one thing to consider is the possibility of receiving a notice from the IRS.
Millions of Americans are selected each year for an audit. In some cases, the IRS notice you receive may not even be for a tax audit, but rather something much more complicated. The key thing to remember is that when you receive any type of notice from the IRS, it is not something to be taken lightly. However, handling the situation in a proactive and cooperative way will make the rectification process much smoother.
Here are a few steps you need to take after getting a notice from the IRS:
Keep Calm
Just because the IRS sent you a notice does not mean you are in trouble. Never assume you did something wrong (unless you knowingly reported false information). Stay calm and read the entire letter to understand exactly what they are requesting of you. This will help you know how to proceed.
Contact Your Tax Professional
If you prepared your taxes through a tax professional, contact them immediately. If you did your taxes yourself, reach out a tax professional for assistance. The tax professionals at Ferguson, Timar & Company will be able to help guide you through the process, prepare any necessary information and cover all the details. It pays to have someone on your side that understands your tax returns and can help remove some of the burdens you may be feeling.
Gather Your Information
Most IRS notices will request specific information, financial documents or receipts to verify the amounts you reported on your return. Be sure and have that information readily available. Study the letter carefully and make sure that all specific documentation being requested is then provided to the IRS auditor.
Take Action
The best thing you can do is take immediate action. The IRS sent you a notice for a reason and it’s your responsibility as a taxpayer to resolve the issue in a timely manner. Otherwise, you could be facing fines and other tax penalties that no one wants to deal with. Be proactive and cooperate fully with the auditor’s requests. The more effort you make, the less it looks like you have something to hide.
Nobody ever wants to receive a tax notice from the IRS, but it can happen to anyone. Whether you need assistance in preparing your tax returns or dealing with an audit or other IRS notice, Ferguson, Timar & Company is here to help. Contact us today to schedule a consultation.