How to Solve IRS Tax Problems
Are you stuck staring at a confusing letter or notice from the IRS? It may be scary, but IRS tax problems are not the end of the world. Here is a step-by-step guide that breaks down the process and will help you solve your IRS tax problems.
Correspondence from the IRS can trigger feelings of panic.. Many people handle these negative feelings by ignoring correspondence from the IRS. While this strategy may give you comfort in the moment, the IRS will be less sympathetic down the line. Opening the message sooner rather than later will give you the best chances of settling the IRS tax problem without additional penalties and interest.
Identify the Problem
Once you’ve opened the correspondence, there are three main points you should focus on in order to solve your IRS tax problem:
Tax Year
As a whole, the IRS can move slowly. That means correspondence you receive from the IRS might not always be about your latest tax return. Make sure you correctly identify the tax year on the notice so you can provide the IRS and your tax attorney with the information relevant to the notice, not just your most recent tax return.Notice Deadlines
Within the notice, the IRS will provide you with a list of your next steps as well as the deadline you have to complete those steps. Even if you have a difficult time understanding what the IRS is asking for, make sure to note the deadline. This is your window of opportunity to contact a tax attorney who can advise you or to contact the IRS itself for clarity regarding the instructions. Don’t let the situation get worse by ignoring the deadline.Response Form
The IRS will specify how you need to respond to the notice. In most cases, they will provide you with a form number or copy of the form that covers all the information they need from you. If this seems overwhelming, consider hiring a tax attorney who will handle the correspondence on your behalf.
Gather Your Documents
The first step toward solving your IRS tax problems, you should gather your records, starting with these three documents:
Recent IRS Notices
Gather all IRS notices you’ve recently received. The notices could be related and can provide you with more information on your situation. If the notices aren’t related, it’s good practice to also address past notices and ensure that they won’t make your IRS tax problems worse.Tax Return of Stated Year
The tax return for the year stated in the notice is imperative to solving your IRS tax problems. The tax return shows how you reported and paid your taxes. More likely than not, that year’s tax return will also cover the information that the IRS is questioning, such as reported income or a miscalculation.Response Form
As mentioned above, the response form will help identify additional information you may need as well as your next steps in the process. When you consult with a tax attorney, bring the requested form and have them look over your response to ensure all the needed information is present and in the correct format.
If additional documentation is needed, a tax attorney will guide you through the information gathering process.
