If you receive a letter from the Internal Revenue Service about a change that they made related to a tax return you filed, the error could be theirs, yours, or made by someone who reported your income to the IRS. How you handle the tax resolution matter will depend on who has made a mistake. If your tax return was prepared by a tax professional, it is important that you share the letter with them so that they can best advise you as to how to proceed.
If you made a mistake, such as leaving off an item, incorrectly calculating the tax, sending in your return late, or something else, and you agree with the changes that the IRS has made, the tax resolution is fairly straightforward. If the letter shows tax due, you can generally just send in payment with a copy of the letter. If the letter shows a refund to you and you agree with it, feel free to enjoy the funds. If the refund is more than you should be getting, it may be tempting to keep it, but that might not end well if they later correct their error and demand a return of the funds.
If the IRS has made a mistake, tax resolution becomes a bit more complex. It can take anything from drafting a letter to making an appointment at a local IRS office, as well as following up to be sure the problem has been resolved. It is best to work with a tax professional for these situations, as they have experience handling tax resolution matters in the most expedient and effective manner.
If someone has misreported your income to the IRS, you may have a multiple-step process to go through. Sometimes all that is necessary is a letter from you to the IRS to let them know the error was made, but other times you may need to reach out to your employer to get a corrected tax statement and then let the IRS know. Again, this is a tax resolution situation where a tax professional should be consulted.
If you receive a letter from the IRS, we recommend reaching out to us at Proctor & Assocs. We can assist you with your tax resolution issue whether we completed the initial tax return or not. We can also alert you if the letter is actually a scam. It is important to resolve these matters as early as possible, especially if you have tax due, to avoid the IRS taking additional action such as wage garnishment or bank levy. Reach out today and let us help you with our experience in tax resolution issues.