5 Tips for Handling IRS Notices

1. Read it Carefully

Get a clear understanding of why the IRS is contacting you and the importance of the issue. Some IRS notices are sent via certified mail, such as the Notice of Intent to Levy, while others are mailed via regular mail, like changes made to your tax return.

2. Don't Ignore or Procrastinate

Regardless of the reason the IRS is contacting you, it's usually not a call for alarm. However, if action is required on your part, the notice will state this and you'll have ample time to deal with the matter but you must not ignore the notice or procrastinate.

Once you’ve carefully reviewed the letter, you'll know if any action is required on your part. Ignoring it can cause additional steps to be taken by the IRS. For example, a demand for payment notice will ultimately result in a Notice of Intent to Levy, if you ignore it.

3. Keep Copies

Keep copies of all correspondence with the IRS, including documents you send to them. You may need to refer to them in the future.

4. Beware of Scams

Tax fraud has become an epidemic problem. It’s important to understand that IRS letters and notices are sent to you by mail through the USPS. Do not respond to requests for personal or financial information you may receive via email or social media.

Don't give out any information to anyone who calls you demanding immediate payment for your tax bill.

5. Get a Tax Professional Involved

Last but not least, get a good tax professional involved. They can help you navigate the tax code to your advantage. For example, there are certain revenue procedures within the tax code that may provide relief and it could be as simple as sending a letter back to the IRS asking for that relief under a certain revenue procedure.