3 Key Steps to Follow After Receiving an IRS Notice
Right now, there is a lot on everyone’s mind, like managing your children’s online education, making grocery runs, and monitoring your loved ones’ health. But what should not be on your plate is dealing with a notice from the IRS. Unfortunately, this is the time of a year when the IRS sends letters across the country. When people receive these, many are plagued by fear and will procrastinate on even opening the letter. However, if you want to stop the situation from escalating, then you need to follow these three steps.
If you open your notice and discover that you do owe the IRS, then it’s important to stay calm. Pay as much as you can right away, as this will help reduce any penalties or interest you accrue. Thankfully, the IRS has options for taxpayers who cannot pay their taxes in full, such as a financial hardship determination and payment plans.
Assess the Situation
When you’re not panicking, you’re much more inclined to evaluate a situation and explore your options. There are many things the notice could be: an audit, a request for additional information, an update on your tax debt, and more. Every one of these situations requires a specific action plan that needs to be carefully reviewed. Regardless of what it is, there will be a notice or letter number on the bottom right corner of the correspondence that you’ll need when getting help from an IRS tax relief professional. This will help you and your tax pro get on the same page so you can explore your options together.
It would be best if you started gathering all tax-related documents as soon as possible to respond to the IRS notice. Send all your tax documents to your tax relief professional immediately to start the tax resolution process. Most IRS notices have strict response times and appeal deadlines, so taking swift action is essential. Our most successful clients follow these three steps and find themselves moving from defense to offense. Those who are playing catch-up in these situations usually have to face harmful liens, levies, or wage garnishments. If you’ve received an IRS notice or have any questions or concerns about your taxes, then be sure to reach out right away. We offer a free review of IRS notices, and we would be happy to help anyone in distress in our community.
~ Michael Raanan MBA, EA, Former IRS Agent