When you receive a letter from the IRS, the first thing you want to do is verify that it came from them. If you think anything is suspicious about it, contact the IRS immediately.
If the letter is valid, keep reading below to ensure you understand what it is saying and that you take the appropriate action.
Why would you get a letter?
The most common reasons the IRS would send you a letter include:
- Balances
- Refunds
- Tax return questions
- Identity verification
- Additional information request
- Return changes
They may also update you about delays in returns, so you must understand your letter, so you can take the appropriate action.
How should you read it?
You should read your letter carefully because it will have a lot of important information. For example, if they are notifying you of a return change, take a look at your original return and the new information they have provided to see what has changed.
How do you respond?
A lot of notices will require that you respond before a specific date, which you must act within to preserve your right to appeal the notice and avoid any late penalties. You can respond with the appropriate action by mail, fax or online.
How do you pay?
If you owe a balance, pay it, even if you can only start with a partial payment. If you want to pay the full amount, you can do so online, or request an Offer in Compromise. That can reduce the amount you owe upfront.
Remember to check your letter and ensure that it came from the IRS. When it comes to certain matters, you might need to get third-party help, such as with an audit, to ensure you are protecting yourself financially.