LETTERS FROM THE IRS
You got a letter. Now what? (Hint: Panicking doesn't help!)
First of all, OPEN THE DARNED THING! I
can't tell you how many people panic when they get a letter from the IRS and
therefore just don't open it for fear that the letter tells them they owe
taxes and the IRS is taking their house! If that was the case, the IRS would
have already taken the house! So, since it's not that, better open it and
see what they have to say.
You could call the IRS right away. Or
you could carefully read the letter as to why they have contacted you. The
IRS letters have been carefully written so that the average taxpayer can
understand them. That being said, half the envelope is filled with all sorts
of mumbo-jumbo about your taxpayer rights.
If the IRS is asking for action, it is
advisable to handle it in some fashion right away. Take the letters
seriously, even though it may contain an error. It is your duty and
responsibility to contact the IRS to straighten the matter out.
What's in the Letter?
Well, that depends, Sometimes it could
be good news...you made a mistake, but the IRS owes you a bigger refund! (A
nice letter to get!) Or it could be the IRS asking for a missing tax return.
Below, I've listed some common IRS letters and what they mean. Since there's
so many different letters to cover so many different situations, you'll have
to actual read the letter to determine what is going on.
COMMON IRS
LETTERS – (More info later)
CP-59 IRS is looking for a return you should have filed
CP-22 IRS corrected your return
CP-2000 Proposed corrections to your return; you didn't report all
your income
Much of the
information one needs to complete a tax return is available through other
sources. In other cases, reasonable estimates can be made in order to
prepare a tax return. If data can’t be found by the due date, the IRS allows
you to file a corrected return at a later date.
What WBTax Can Do To
Help
Again, it depends on the situation, but
we can help almost everyone. The most common letters that you should seek
assistance on are those that either demand a payment to that ask you about
items that are not on your return (CP2000 series). We will review the letter
with you and determine a plan.
As usual, there is no cost for us to review the
situation, so it would certainly benefit you to call us now.
Remember, you don’t need to talk to the
IRS. You don’t need to make excuses. But, you must take the first step. Call
our office and set up a confidential, no cost appointment and we’ll lay out
the simple steps for you to get back into compliance with the IRS.
