Everyone dreads the day when they get a letter from the IRS, and our tax professionals want to make sure you are prepared.
- Understand the reasons you are receiving a letter. The IRS sends letters often, and it’s not always bad news. You may receive Notice CP49 because you overpaid your taxes (which requires no action on your part), Notice CP2000 for mismatched information, an audit request or anything else. The most important things to do when you first receive the letter are to read it in its entirety and call the number provided if you are confused.
- Notify your tax preparer. If you are using a tax preparer, whether that be an online service like H&R Block or an accountant, immediately let them know that you have received an IRS letter. Whatever the reason for the letter, your tax preparer can negotiate with the IRS on your behalf and help you prepare for the next steps.
- Gather all necessary documents. Often, if you agree with the IRS’s notice and do not need to make a payment or submit to an audit, you do not need to take further action. But if you are being audited, it is important that you have all necessary documents in order. Pay stubs, mileage logs (if increased travel is the primary reason for the audit) and receipts are important, as well as any other documents pertaining to the reason for the audit. Your tax professional will know which documents you need and will help you gather them so you can best be prepared.
- Watch out for scams. The IRS sends all notices and letters by mail. If you receive an email, a text or a message on social media claiming to be the IRS, do not open the message or respond to it. If you are unsure, call or visit your local IRS office to verify.
Receiving a letter from the IRS is often not a major issue, but at Frank W. Kapitza & Associates, we understand how concerning it can be. Our tax professionals will negotiate with the IRS and work with you every step of the way. Contact us at (973)-276-0650, or leave a message on our website, to get started!