Dealing with an IRS Notice

 

Puzzled by an IRS or State Tax Notice?

Frequently taxpayers are intimidated by an IRS tax notice they receive in the mail.  While some notices are innocuous, you should always pay attention to them – particularly if they say you owe back taxes or you haven’t filed a return.  There are over 100 IRS Notices that relate to back taxes or unfiled returns. Often times it is not clear from the notice exactly why they are sending it and what you should do next.  So sometimes it’s best to employ a tax professional to review your tax situation and advise you on how to respond and proceed – especially if you have not filed some tax returns and you think you owe back taxes.

For example, with our Tax Account Review service we contact the IRS and state tax authorities to determine what tax returns are missing, which are needed, and why they are sending you notices. This analysis will include a review of your wages and income, a transaction history of your record, year by year, with the IRS or state, and a recommendation for the best course of action given your unique personal situation. It will help you understand the notice you received, your tax situation and what you should do about it.  And it’s only $195.

Don’t Ignore Your IRS Notice

If you have missed some tax payments or failed to file your returns on time, now is the time to figure out your tax situation and take action to minimize the financial damage and havoc that will follow shortly. Let’s review what will happen next if you choose to do nothing and how you can avoid these negative consequences.

Negative Consequences

If you haven’t filed your returns on a timely basis, the IRS will assess interest and penalties to you that will double the amount you own them in the next 5 to 7 years.  Each state has its own penalties and interest as well.   At some point, the IRS will create a Substitute Return for you which will probably show that you owe more taxes than you really do. (These Substitute Returns often don’t use the correct filing status and they don’t provide you many of the deductions you normally would take.) Once you have received a tax notice about back taxes due, it won’t be long before the tax authorities start to levy your bank accounts and retirement funds.  They may also set up a wage garnishment that will leave you little money from your regular payroll check.  In addition, they will put a lien against your house or other personal property.

Not filing your tax returns in a timely fashion, whether you think you will owe or not, can cause problems in other areas of your life as well. Tax returns are often needed to apply for loans, such as a car, home, or student loan – especially if you are self-employed. A back tax debt may also cause tax liens to attach to your credit report which may affect your overall credit score.

The Solution for an IRS notice

With the aid of one of our tax professionals and our Tax Account Review service, you’ll save time, money, and stress and you’ll end up with a plan to address your IRS or state tax notice and your tax problem more specifically.

Contact us today to start your IRS Notice  Tax Account Review.        

Call Now for a Free Confidential Consultation: 1-855-375-5400.