One of the scariest moments is going to the mailbox and finding a notice from the IRS. The worst thing to do is to throw it in a pile and ignore it, hoping it will go away. When you open it, you may find a notice in your favor. Perhaps you miscalculated your return and overpaid or if you asked for a change on your return they may have granted it. One the other hand, you may be receiving a notice that you’re up for an audit, or as they say, a notification of examination.
Since 2001, the IRS has sent out 670% more notices, so there’s a good chance that you’ve probably received one.
There are 5 categories for the most common notifications sent out by the IRS:
- Adjustments/Discrepancies – These notifications are usually asking for clarification or more information. They may also be advising you of an audit adjustment, refund offset or an employment tax issue.
- Return Errors – If you have an error on your tax return, your return conflicts with IRS information, or there are discrepancies in your estimated tax payments, you may get one of these notices. Other reasons to receive this type of notice include a deduction or credit, or payroll tax errors.
- Examination/Underreporter – To receive these you’ve either gone through an audit or examination or you’re getting notified that you’re about to undergo one. If you’ve gone through one, you may be receiving information on the outcome.
- Collection/Unpaid Balance – Unpaid balances, installment agreements or levies and liens will be addressed in these notices.
- Other – All other notices fall into this category and the most common would be the issuance of a new EIN/TIN number or an incorrect federal tax deposit with no penalty assessed.
Whatever the reason for an IRS notice, don’t go it alone! Call your tax attorney who can intervene on your behalf. The attorneys at Ourednik Law Offices can help you with your tax issues and can guide you through the process. Call today (904) 396-8080.