What to do when you receive a letter from the IRS
If you receive a letter from the IRS, it’s more than likely regarding your federal tax return. Your notice will explain the reason for receiving it as well as necessary actions to take. You could have a balance due, or the IRS determined you are due a larger or smaller refund than anticipated. They may also need additional information, have questions or are making a change to your return. The IRS may also need to verify your identity.
Written communication from the IRS will always come before a phone call or a knock at your door. Beware of letters without official IRS letterhead or other forms of communication before receiving the initial written notice.
It’s suggested that you take action quickly and accurately in order to minimize additional interest and penalty charges as well as to preserve your appeal rights if you don’t agree. If you receive an IRS letter, don’t panic and contact your preparer. Read the letter carefully to review the information to determine the reason. You will only need to reply if instructed to do so or if you wish to dispute a notice. Otherwise, simply take the requested action and keep the notice in your records.
If you are unsure about the content of the letter, reach out to your tax preparer to discuss the letter and what your next steps should be. Murtha & Murtha can draft IRS response letters if you do not agree with the notice.