It’s no secret that the IRS has a lot of authority to come after you if you owe them money. So, what happens when the IRS is the one in the wrong? Believe it or not, there are some cases where the IRS tells you that you owe money and they are incorrect. If you think your IRS notice doesn’t look right, here’s how to handle it and what you can do to make things right.
What If My IRS Notice Doesn’t Look Right?
What do you do if you get an IRS notice that just doesn’t look right? One thing that’s important to remember is that although the IRS is powerful, they aren’t infallible. In fact, they were recently audited by the General Account Office and it was found that they were not always accurate in reporting. It was also found that they weren’t always accurate in sending out notices to taxpayers of what they owe. So, just because you get a notice in the mail, doesn’t mean it’s right. This is especially true if you feel your notice looks incorrect.
While many people blame their tax professional for any tax problem that comes about, in some cases it is actually the fault of the IRS. This is why it is particularly important to open all your IRS notices and check them for accuracy. Open your IRS notices in a timely fashion. If you feel a notice looks incorrect, contact your accounting professional for IRS tax help. They will be able to review your notice, determine accuracy, and help you deal with the IRS to resolve the issue.
What Happens When the IRS Says You Owe Money That You Don’t?
Just because the IRS says you owe money, doesn’t mean this claim is set in stone. Several individuals have had to fight the IRS in their claims that they are owed money. For example, we had a client come in with their 2015 tax return. Their IRS notice stated that they bought and sold stocks without reporting the transaction. The result was a $10,000 bill.
When individuals see an IRS notice, most are tempted to just pay up and resolve the bill. In the above-mentioned case, our client’s spouse was very much willing to pay the bill before it escalated. Before you pay an IRS bill you don’t believe you owe, talk to a tax help representative who can help you handle your tax problem.
In the case listed above, instead of having to pay the full $10,000 bill we were able to gather all the backup data from the broke who transacted the stock exchange. We were able to prove that instead of $10,000 being owed, the correct amount was less than $500. This was a result of the losses that were incurred within the buying and selling account. At a savings of over $9,000, this is a classic example of why you should pursue any questions you have about what you truly owe the IRS.
What Kind of Tax Help Can I Get If My Notice Is Truly Wrong?
If your tax notice is, in fact, incorrect, you can appeal to the IRS. It’s particularly important to enlist IRS tax help from a representative who can speak on your behalf. An accountant skilled in common tax problems will easily navigate your case and explain your rights. It’s of extreme important to deal with these issues in a timely fashion. Failing to deal with these issues in a timely matter can lead you to miss your deadlines to appeal.
Your tax professional will look over your old returns, gather the backup data to support your claim, and accompany you to meet with the IRS. Once the tax problem is resolved, you will get a new notice. When you hire a quality, skilled tax professional, they will also help you take extra steps to avoid the same issues in the future.
At Advanced Accounting, we have a wealth of knowledge providing tax help to our clients. We will put our experience to work and help determine whether the IRS is incorrect. Then we will gather the necessary backup information and start the process to correct your tax problem. As leaders in our industry, it is our passion to provide clients with IRS help and reach a solution that works.
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