Tax Tip: Receiving Notices from the IRS
If you receive a notice from the IRS for a tax audit or simply to question one or a few items on your tax return, many times people will think they should concede the point in hopes the IRS will then leave them alone. The person receiving the notice may fear the IRS and would rather pay a tax they may not even owe rather than deal with the situation. However, this is almost always a bad decision. If you concede to the IRS adjustment or fail to provide information, the inference is that your tax return was incorrect, and the IRS was justified in its question. Therefore, it may create further questions about what other issues, problems, or omissions could be on your tax return and lead to a tax audit or review of further items on the tax return or even other tax years. Additionally, if you do not owe the tax because the IRS assessment is incorrect you should not have to pay a tax you do not owe out of fear. Contact us at Hone Maxwell LLP, and we can assist you in understanding any notice you receive from the IRS, and let you know your best options for resolution.