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IRS and/or State Department Notices and Letters - There's No Need to Panic!

May 30, 2014

 

Each year, the Internal Revenue Service and the various state revenue departments send millions of notices and letters to taxpayers for a variety of reasons.  We’d like to take a few minutes to address the steps to take if you receive one of these notices or letters.

 

First, don't panic!  There are many reasons why the IRS and states send out letters or notices.  A notice is typically about a specific issue on your federal or state return or account.  It may propose changes to your account or ask you to provide additional information.  It may indicate a balance due to the taxing jurisdiction.

 

If you receive a notice indicating the IRS and/or state department has made a change or correction to your tax return, please be sure to forward a copy of the notice to us to review the information as soon as possible.  It is important to respond in a timely fashion.  We will compare the notice with your originally filed return to identify the change and work with you to determine whether the notice is correct.

 

If the notice proposes changes to your return, and we determine that the proposed changes are correct, you are not usually required to respond unless the change results in a balance due to the taxing jurisdiction.

 

If we do not agree with a proposed change, which is often the case, it is important to respond as soon as possible.  ECS can respond on your behalf and explain why the change is not correct.  We will include information and documents needed for the IRS and/or state departments to review.  Once the information has been mailed to the corresponding department, it can take 30 days or longer before you receive a response.

Often times the notice is just requesting additional information to support a line item on your tax return.  Or it may be a notice that your return has been selected for audit.  In these instances, you can forward the notice to us and we will advise you on the best way to handle the request.  Depending on the situation, we may ask you to sign a power of attorney giving us the authority to represent you when calling the corresponding department for questions or clarity on the notice or letter received.

 

Whether or not you agree with the proposed changes, if you choose to address the matter on your own, please make sure ECS receives a copy of any notice that you receive so we are aware of any changes to your originally filed returns.

 

Be aware that the IRS and state departments send all letters and notices by mail.  They do not generally contact people by telephone, e-mail or social media to ask for personal or financial information.  We have heard of many individuals receiving calls or e-mails from individuals claiming to be IRS or state tax agents.  Most have been fraudulent calls.  Please be aware of this if you receive any calls or e-mails asking for information.  Do not give personal information over the phone to a caller who identifies himself or herself as a revenue agent.  If you do get a call, request that the caller send a written request.

 

As always, if you have any questions, please don’t hesitate to call your contact at ECS or e-mail us at info@ecsfinancial.com.


2014 Tax Due Dates:

May 31st –

Monthly Illinois wage report for April due (employers with 50 or more employees)

June 16th –

2nd estimated tax payments for 2014 due for Individuals and Corporations

June 30th –

Monthly Illinois wage report for May due (employers with 50 or more employees)


This email disclaimer is subject to IRS Circular 230 as mandated by federal law. Unless expressly stated otherwise above, nothing contained in, forwarded with, or attached to this email was intended or written by ECS Financial Services, Inc. to be used, and cannot be used, by any person for the purpose of (1) avoiding any penalties that may be imposed under the Internal Revenue Code, or (2) promoting, marketing or recommending any federal tax transaction or matter addressed herein.