Receiving any kind of letter from the Internal Revenue Service (IRS) is always a heart-stopping moment. They don’t often write to wish you joy and happiness. If they’re writing to you, it’s usually for a less-than-pleasant reason. Still, the IRS is just a collection agency looking to get the money that’s owed. Take a deep breath when you receive a letter.
Before you freak out, panic, or throw the letter in the trash and pretend like you never received it, let’s discuss why the IRS could be sending you a letter, and how you should respond.
Why Are They Sending You a Letter?
First, understand that the IRS is sending you a letter for a reason. Yes, it’s scary to receive mail from them, and it’s almost never good news, but it’s still in your best interests to open and read the letter. Once you’ve read the letter, you should take a day or two to process the information.
Next, if you agree with them, you need to come up with a plan to resolve the issue. If they are asking you to pay a large sum of money that you don’t currently have, then you need to come up with a plan on how you will do that.
You can contact the IRS to discuss payment arrangement options or settlement options, or you can contact them if you disagree with what they are stating you owe.
How to Respond to an IRS Letter
How you respond to an IRS letter will depend entirely on your unique situation and what they are asking for, but respond you must. You can’t just ignore the situation and hope it will go away.
- If the IRS is requesting you mail in some information, do what they request.
- If they are requesting you make a payment because of an error on your tax return, you should make a payment as long as you agree that you made a mistake.
- If you believe the IRS is wrong, you will actually have to tell them you think they are wrong. That’s when you will send them a letter back. Tell them why you think they are wrong, and furnish evidence that backs up your claim. They should respond to your letter within thirty days.
- If they still believe you owe money and you don’t agree, you can request a hearing.
The most important piece of advice is: Don’t ever ignore a letter. If you can’t handle the situation on your own, reach out to a tax attorney for help.
Have a Professional Review Your IRS Tax Letter
If you feel overwhelmed and unsure of what to do after receiving a certified letter from the IRS, The W Tax Group can examine your tax liability situation and help you come up with a solution to resolve the matter. If you want to appeal a decision made by the IRS in your letter, we can help you with an appeal as well.