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Taxpayers receive a notice or a letter from the IRS every time it needs to ask a question regarding their tax returns, or in case it needs to make the taxpayer aware of changes made to their account. Taxpayers also receive an IRS notice when there is a due that needs to be cleared, and there are new payments to be made. It is therefore imperative that an IRS Notice does not always bring bad news. Taxpayers often panic when they receive one, which is uncalled for, often fearing the worst. There are several kinds of IRS notices that the IRS sends to the taxpayers to notify them of a possible error, or misinformation provided by the taxpayer as well. It is therefore suggested that the taxpayer respond in a calm and collected manner, and understand what this letter is about, or contact a professional that provides tax filing services, to find out the same.
What to do if you receive an IRS Notice, here is what you should do:
It is common for the IRS to send letters and notices regarding federal tax returns and accounts, dealing with information regarding specific issues while providing the taxpayers with instructions that need to be followed. It is therefore suggested that the taxpayer read the notice carefully, to understand what the notice is about, or contact a tax preparer for the same. Reading and understanding the notice at the earliest can help taxpayers take the required steps on time, and avoid penalty charges.
If the taxpayer has received a letter regarding their tax returns that need to be corrected, or changed in some way, it is suggested that they review the suggested changes to find out whether they are valid, or not. In case the suggestions made by the IRS are valid, the taxpayers should keep it in the record by making a note. The taxpayers only need to act in case they do not agree with the suggestions made in the IRS Notice, if the IRS demands more information, or in case there are dues to be cleared. Taxpayers can check out the notices they have received by logging into their IRS online account, which can help them verify their dues.
In case you have a power of attorney, the IRS will send a letter to you, as well as the attorney that you have designated. There are several actions that the IRS provides an extended deadline for, while there are some, for which the deadlines cannot be extended. It is imperative for the taxpayer, therefore, to review, verify, and act on the suggestions made by the IRS by themselves, or by opting for tax filing services to avoid troubles with the same or reach out to a provider of tax filing services.
If the taxpayer finds inconsistencies within the suggestions made by the IRS, and they intend to contest the notice, they need to follow the instructions on the notice to raise a dispute. The taxpayer must provide documentation, and information supporting their claim, which will be reviewed by the IRS.
Different types of IRS Notices, and how to deal with them:
When a tax examiner identifies a discrepancy within your tax returns, based on the information received by third parties such as financial institutions, and employers, Notice CP2000 is issued. This notice is not a bill, but rather a proposal for adjustment within the income, credits/deductions, or payments you have reported. In case you agree with the suggestions made by the IRS, you are required to sign the response form and return the same in an enclosed envelope. However, to contest the notice, the taxpayer is required to mark the appropriate boxes on the response form and attach a signed explanation of the disagreement. Documentation supporting the taxpayer’s claim must also be included.
A taxpayer might also receive a CP75 Notice, in case the IRS is auditing their tax return. This notice is dispatched to ask for more information regarding the tax returns claimed by a taxpayer and requires the taxpayer to send documents that can close the audit. Taxpayers need to respond to this notice before the date that is mentioned on the notice.
In case you find yourself unable to comprehend the information provided within the IRS Notice, it is suggested that you opt for tax filing services by reaching out to a tax preparer who is well-versed with the taxation laws. However, finding a reliable provider of Tax filing services is a hectic task, as the market is saturated with sub-optimal performers, as well as frauds that amplify the fear of jail, or heavy penalties, to get as much money out of you as possible. It is suggested that you reach out to the well-trained, and experienced team of tax preparers at NSKT Global. The tax filing services provided by NSKT Global allow taxpayers to rid themselves of all the heavy lifting involved in tax filing. The team of professionals at NSKT Global keeps track of all your transactions, to help you file accurate tax returns, and help you handle IRS Notices by explaining the statements made within the notice, and the necessary course of action. Book an appointment with an expert consultant at NSKT Global, and find out how you can benefit from their tax filing services.
