Eight Tips for Taxpayers Who Receive an IRS Notice

Every year the Internal Revenue Service sends millions of letters and notices to taxpayers, but that doesn’t mean you need to worry. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox.(NOTE from Mary: Feel free to contact me if you need any assistance with correspondence you may receive from IRS or a state. And remember that IRS NEVER uses email to handle specific tax matters – anything you may receive purporting to be from them is spam!)

  1. Don’t panic. Many of these letters can be dealt with simply and painlessly.
  2. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.
  3. Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry.
  4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
  5. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
  6. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left part of the notice. Allow at least 30 days for a response.
  7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right corner of the notice. Have a copy of your tax return and the correspondence available when you call.
  8. It’s important that you keep copies of any correspondence with your records.

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. Information about penalties and interest charges is available in Publication 17, Your Federal Income Tax for Individuals. Both publications are available at www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links:

  • Publication 594 (pdf)
  • Publication 17 (pdf)

Newly Married or About to Be?

IRS has posted on its website a list of tax tips for newlyweds and couples who expect to marry in the near future.

The tips include “important steps [couples] need to take to avoid stress at tax time,” IRS said.

The tips include the following:

  • Report any name change to the Social Security Administration so that a name and Social Security number will match when a tax return is filed
  • Notify IRS and the U.S. Postal Service if there is a new address
  • Report any name and address change to employers to ensure receipt of Form W-2, Wage and Tax Statement, after the end of the year
  • Use the IRS Withholding Calculator to determine the correct amount of withholding needed for a new filing status
  • Select the correct tax forms
  • And choose the best filing status.

IRS Summertime Tax Tip 2011-20 is located on the IRS website at http://www.irs.gov/newsroom/article/0,,id=210762,00.html.