The IRS Letter You Don’t Want to Receive

A letter from the IRS used to send each of us into fits of anxiety. Now we get them all the time, since the IRS likes to send us forms every other day. That being said, there is still one particular letter you do not want to receive from the agency.

Most mail from the IRS is thick. Whether you realize it or not, we are all conditioned to not freak out when such a letter comes. It is forms and we inherently know this. Ah, but what if you get a thin letter. This one is different and different means bad news.

A thin letter from the IRS usually contains something known as a notice statement. A notice statement is issued for one reason only. The reason is the IRS has determined there is something fishy with your taxes. Okay, now you can panic.

While panic may be the first thing on you mind, once in a blue moon the message in the thin envelope can be good news. Once in a blue moon, the agency will let you know that too much was paid in. Once in a very rare blue moon.

Audit. It is a word that can make a grown man or women weep like a small child. Well, most of these letters are notices of audits. Sorry. Ah, but the audit will rarely be the type of horrific experience you have heard of from someone who knew someone.

For the majority of people, the indication you are being audited is not the foreshadowing of a rough time you might expect. Instead, you stand a good chance of receiving what is called a correspondence audit. Yep, you get to deal with everything by letter.

With a correspondence audit, the nature of the dispute will be identified in the letter. The agency will often indicate it doesn’t buy one of your deductions. It will also suggest a revised amount due on your taxes. In short, the problem and solution is provided.

At this point, you have a couple of choices. You can agree to the change by usually doing nothing. Alternatively, you can contest it by sending in a letter indicating as much and why you disagree. Finally, you can get on the phone and argue about it.

If you accept the proposed changes, the audit is over as long as you take any required action such as sending in more money. If you want to fight the agency, you can. Understand, however, you might be opening yourself up to a full audit.

The IRS issues millions of notices to taxpayers each year. A huge percentage are resolved without blowing up into a bigger audit. If yours does, make sure to get professional help. Tax attorneys offer the best prospect of getting the IRS to back off.