Did you know the IRS mails out 1 million pieces of mail per week? During the shut down due to COVID-19, this trickeld down to no automaic notices for the last two months or so. According to the National Taxpayer Advocate, the IRS never stopped PRINTING, but they stopped MAILING.
The Internal Revenue Service is about to begin mailing TWENTY MILLION back notices. Many of the notices will have expired – for exmaple ‘we have your payment but not a tax return’, when in fact in the last two months they processed the return.
Please be patient — many of these notices will be WRONG or have otherwise been addressed prior to the Internal Revenue Service mailing them to you. But others might be new and need assistance.
We recommend you open all notices you received from the Internal Revenue Service. If we prepared your tax return please fax, upload or bring us a copy of the notice you received so that we may review the proposed changes.
The IRS is NOT Always Right. Think twice about automatically paying the amount due on a notice.
Quotes from actual IRS correspondence received by clients:
- “Thank you for your correspondence. We currently do not have a copy of the correspondence we sent to you regarding your child’s tax return.”
- “Our records show we received a 1040X…for the tax year listed above. We’re sorry but we cannot find it.”
- “Our records show you owe a balance due of $0.00. If we do not receive it within 30 days, appropriate collection steps will be taken”.
- “Payment is due on your account. Please submit payments on or before June 31 to avoid late payment penalties and interest.”
It’s pretty tough to pay a balance due of $0 on June 31st when June only has 30 days. The message should be clear. If you receive a notice from the IRS do not automatically assume it is correct and submit payment to make it go away. The same is true for any state notices. They are often in error. So what should you do?
- Stay calm. Try not to over-react to the correspondence. This is easier said than done, but remember the IRS sends out millions of notices each year. The vast majority of them correct simple oversights or common filing errors.
- Open the envelope. You would be surprised at how often clients are so stressed by receiving a letter from the IRS that they cannot bear to open the envelope. If you fall into this category try to remember that the first step in making the problem go away is to open the correspondence.
- Get Help. You are not alone. Getting assistance from someone who deals with this all the time makes the process go much smoother. If we prepared your tax return please fax, upload or bring us a copy of the notice you received so that we may review the proposed changes.
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