Last week the IRS admitted to sending out over 4,000 erroneous penalty notices. The IRS then realized the error, corrected it, and sent notices to the taxpayers explaining the situation. You may think this is an indication that the IRS does make mistakes and you can ignore the recent notice you received from them. However, the reason this is news is because it is very rare the IRS makes a mistake, realizes it on its own, and fixes the situation.
Many times the IRS will send you a notice, bill or request that does not have all the facts. This is because the IRS can only use the information available to it when dealing with your tax case. Therefore, if there was a miscommunication filing your return, a bill that you think was already paid, or deductions that were not considered, the IRS does not have this information and it is up to you to rectify the situation. If the IRS asks for clarification and does not receive a response it has to proceed with the known information, which is understandably not usually favorable to the taxpayer.
Due to this it is always better to address notices or issues with the IRS immediately. There can be many options for resolution and the IRS is willing to work with taxpayers that are making an effort to be compliant, however, the longer a situation goes unattended the less willing the IRS is to work with the taxpayer and fewer options may be available. It is never too late to address the issue because over time the situation can only worsen if it is not resolved.
If you have received a notice from the IRS you can do nothing and hope you are one of the very rare instances similar to the 4,000 people last week or you can take immediate action and give yourself the best chance for a successful resolution. At Hone Maxwell LLP we understand that although it is the best course of action, addressing a notice from the IRS can be scary and overwhelming. This is why we have simplified the process and taken away some of the fear. Use the “Tax Notice Review” section of our website so you can take the first big step and begin addressing your tax situation. Whether your tax issue can be resolved with a simple phone call or something more in depth, it is never going to get resolved if you don’t take any action.