Receiving a notice from the Internal Revenue Service (IRS) is a stressful experience. Even people who make a good-faith effort to pay their taxes in full and on time may end up owing money due to claiming the wrong exemptions or facing other income tax controversies.
It is important not to panic or to ignore the notice that arrives in the mail. The IRS itself advises that individuals review the letter, check the notice number and then compare IRS claims to personal records. From there, there are several key steps to take to resolve the matter effectively.
Consult with a tax law attorney
Federal income tax matters are often quite complex. Even individuals who understand the math or the basics of the law may struggle to negotiate with the IRS. An attorney can validate the IRS’s claims and offer solutions for addressing the issue outlined in the initial IRS notice.
Submit a formal response
Officially communicating with the IRS promptly is of the utmost importance. An attorney can manage communications on behalf of their clients. Providing the IRS with information, the proposing an offer in compromise or challenging the assertions made in the initial letter are all viable options in specific scenarios. Depending on the nature of the allegation, the matter may lead to an audit, collection efforts or even more serious legal issues.
Working with a tax law attorney can help people limit the consequences of a federal income tax controversy. An attorney’s insight can help people limit their losses and strive for the best resolution possible.