Every year, the number of notices sent out by both federal and state tax authorities seems to increase. The sight of that envelope can send shivers down your spine, but don’t panic!
First, if you had a CPA prepare your taxes, ask them to review the notice. Your CPA can let you know what the taxing authority is looking for and what steps, if any, you need to take.
Next, submit the information requested by the date provided in the letter. Never let the deadline pass without contacting the sender, as your account may be adversely adjusted or your refund may be delayed.
There are many reasons that you may receive a notice. As identity theft is on the rise, we are seeing more letters that request information from the taxpayer in an effort to confirm the information provided in the tax return is correct and that the return has indeed been filed by the taxpayer before a refund is issued.
Most importantly, never ignore a notice. Doing so can result in the IRS collections department taking steps like wage garnishment, bank account levies or tax lien on your property.
Take action immediately and use your CPA as a resource, we are here to help you!
Honorine M. Campisi, CPA