What To Do When You Get An Irs Or State Tax Notice

If you receive a letter or notice from the IRS or State it does not necessarily mean that you or your tax preparer did something wrong. Many times the IRS is matching information to 1099s and W-2s filed manually. Human error exists whenever there is data input. Sometimes, the information is included within another portion of your return and the IRS is not aware that it is included.

Always contact your tax preparer when you receive a notice from the taxing authorities. Generally there is a request for a response within 30 days (sometimes less). If the notice indicates that you are getting a refund for a different amount or when you didn't expect one, also contact your tax preparer so that it can be reviewed for accuracy. Don't just cash the check you receive. If there was an error made on the part of the IRS and you cashed the check, interest will be incurred for the period you had the monies. It is much better to wait and have your tax preparer confirm that the error was in your favor.

Human error exists in tax preparation also. If there is any change in your return, your tax preparer must be made aware of it. If the difference impacts your refund or amounts being credited to your "next year" tax payments, there may be an adjustment in estimated taxes that needs to be communicated to you.

When you ignore these notices received from the IRS or State, problems involving garnishment of wages, levying of savings and checking accounts will happen. Be pro-active and get the information to your tax preparer as soon as you receive it. It could help you avoid a visit from your taxing authority.

Source: www.articlecity.com