Internal Revenue Service (IRS) is the U. S. government agency responsible for tax collection and tax law enforcement. While people tend to panic after getting notice from the IRS, there is really no need to do so.
Proper financial planning and cooperation with an IRS audit can lead to an amicable tax settlement. IRS tax help or any general IRS help is available on the IRS website. If required, you may seek the help of tax attorneys.
Here are some tips on what to do if you get an audit notice from the IRS:
- First and foremost, do not panic. The notice generally explains the reason for the correspondence and provides instructions for the taxpayer. Typically, such notices are sent if the IRS believes you owe additional tax, if a refund is due, if there is a question about your tax return, or if the IRS requires any additional information from you.
- The IRS says that many of its letters and notices can be dealt with easily, without having to even call or visit an IRS office. However, if you do not understand the notice or the steps you need to take, contact the IRS helpline.
- If the IRS is seeking an audit of your taxes, find out when and where the audit will be done. These details are generally in the IRS audit notice. If the place and time do not suit you, a request can be made to the IRS for a change in schedule.
- It is important to get in order all the documents related to your taxes. Full documentation is a must to avoid any tax problems. It will help you and the IRS to complete the audit process quickly.
- Do not rush to reach a tax settlement at the time of the audit. Before seeking or accepting any tax settlement, it is advisable to let the audit process run its course. You should make sure to question the IRS official if you find any of the claims made against you to be untrue or unacceptable.
- After the IRS tax audit is over, you are generally sent another communication detailing any additional taxes that you might owe to the government. If the tax demand is acceptable to you, you must pay it. If you dispute the demand, you can still pay the taxes and seek a refund. Alternatively, you can appeal to the IRS Appellate Division.
- The good news is that the IRS is in the process of further simplifying its notices. The IRS says on its website that it is redesigning and revising its notices to taxpayers for better clarity, effectiveness, and efficiency. In the new format, the notices would adopt a plain and simple explanation for the nature of the notice and would clearly mention the action needed to be taken by the taxpayer.
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