Is The IRS Always Right?
Finding a letter in your mailbox with the IRS as the return address is sure to raise your blood pressure, especially if the letter states that you owe money. Before you write a check, it’s important to know that the IRS does make mistakes and is not always right. Here are some tips if you find yourself in this situation:
• Stay calm and carefully review the letter: Try to stay composed as you read the letter and carefully read the letter to understand exactly what the IRS is asking of you. As you go through the letter with a fine-tooth comb, determine whether or not you agree with the IRS’s findings.
• Respond timely: The letter from the IRS should be very clear about what they are requesting of you and within what time frame. Delayed responses could cause penalties and additional interest payments.
• Explain the IRS error: Write a letter to the IRS explaining the error and attach the appropriate documentation to back up your reasoning. Oftentimes, an IRS error is due to the failure of the IRS computers reporting information, however, pointing out the information on your tax return might be all it takes to solve the problem.
• Use certified mail: Be sure to send your response to the IRS through certified mail to track that they received it. This will also show proof that you responded in a timely manner.
An Accounting Firm Can Help with IRS Errors
Getting assistance from an experienced accounting firm that deals with IRS errors makes going through the process much easier. JTS Associates is here to help. Contact us at (516) 877-5900.
