Monday, June 30, 2008

IRS Letter

Question: I recently received a letter from the IRS. Is it wise to contact them on my own or do I need a lawyer?

Answer: Typically the IRS will send out a letter for the following reasons: Missing information on your income tax return, under reporting of income, audit of a tax return or returns, unpaid tax liabilities and collection notices (usually certified).

It is always a good idea to try to understand as much as possible about the issue and what the notice is about, depending on the severity of the situation seek assistance when necessary. Many of the issues involving an IRS letter, however, can be resolved easily by contacting the IRS and providing the requested information on your own. If the notice involves under reporting of income you should contact the tax preparer. If you received a certified letter it is most likely a collection notice that needs urgent attention. It is imperative at that point that you seek a competent tax professional to contact the IRS, assess the situation and advice you on the options that may be available to you.

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