One of the most common types of contact from the IRS is a computer-generated notice in which the Service proposes to increase the tax liability for a return that has been filed. The IRS is authorized to make changes to your return in some cases without a formal audit.
Sometimes these IRS notices are incorrect. Sometimes the information has been presented in the taxpayer’s return in a way that causes the notice to be issued and that information needs to be clarified to the IRS. Sometimes the taxpayer prepared their return not realizing that they needed to disclose certain information that would have avoided these notices being sent.
Taxpayers who do not have an extensive understanding of the tax law often assume the worst and blindly accept the accuracy of what the IRS is proposing and go ahead and pay the additional tax due that is reflected on the IRS notice, or worse, ignore the notice and the IRS proceeds to assess the additional tax liability and initiate collection action.
We offer taxpayers the service of reviewing their IRS notice(s) and provide the taxpayer feedback on analysis of the accuracy of what the IRS is proposing. We then offer a game plan for responding and resolving the issue(s) raised in the IRS notice. Click here to contact us to discuss your IRS notice.
While sometimes the amounts proposed in an IRS notice are accurate, there are often times when we are able to identify actions which can be taken to either reduce or eliminate the additional taxes, interest, and penalties which the IRS is proposing. We have also frequently been able to assist taxpayers in reducing penalty assessments even when the additional tax liability is due.
Even if the additional assessment is correct, at least the taxpayer has the peace of mind that an experienced tax professional with their best interest in mind has reviewed the notice.
Additional Items to Remember When You Receive an IRS Notice
In resolving problems raised in IRS notices, it should be kept in mind that taxpayers generally have 30 days from the date of the CP-2000 Notice to respond. The tax code provides that if you don’t object to an automated adjustment notice within 60 days, it becomes final.
It is extremely important that the IRS has your correct mailing address so that you timely receive any notices or other correspondence from the Service. Taxpayer’s have valuable opportunities to contest unfavorable findings made by the IRS. However, in order to do so, a taxpayer must generally exercise these rights within certain time deadlines which are set forth in correspondence sent by the IRS. Unfortunately, the IRS only has to send its correspondence to the last known address of the taxpayer. The taxpayer is not necessarily required to receive the correspondence. In other words, hiding from the Service will only hurt the taxpayer.
Whenever a taxpayer gets a new mailing address, it is a good idea to notify the IRS of this new address. This notification can be accomplished by completing an IRS Form 8822, Change of Address, and mailing it to the IRS at the address listed in the instructions. Form 8822 can be obtained from the IRS website.
If you receive a computer-generated notice from the IRS it is important to review it as soon as possible and, if anything in the notice appears incorrect, to contest the notice in writing before the due date set forth in the notice. Never ignore notices from the IRS.
If you don’t understand anything in the notice or need help, we can assist you. It is best to get us involved as early in the process as possible.
We have successfully responded to numerous IRS notices which have resulted in significant reductions in the amounts assessed by the IRS. Call us today at 813-760-0722 to discuss your situation or contact us here to schedule an appointment.
Abatement of IRS Penalties