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Other States Tax Administration Verify your employees social security numbers 20 % Off QuickBooks Products + Free Shipping Buy QuickBooks Checks & Forms and Save 10% + Free Shipping Tax Links provided by NATP (National Association of Tax Professionals) Historical Stock Prices (just enter a symbol and a date) Social Security Administration To Find Public Records - Lexis Nexis
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The Dreaded Letter From the IRS Have you ever gotten a letter regarding your tax return from the Internal Revenue Service (IRS)? It doesn’t exactly create a warm, fuzzy feeling. In fact, IRS mail often conjures up a feeling of dread, some of which is not warranted. The first actions to take when receiving such a letter are to remain calm and read the correspondence. Ignoring it is the most common way taxpayers increase any problems. Letters from the IRS generally fall into the following categories: - They ask minor questions or seek additional information. - They send a refund. - They notify you of an adjustment on your return. - They confirm an address change. - They schedule an appointment for an audit. In our experience, less than one percent of the correspondence our clients receive ever end up with an audit and over 90 percent can be handled with no money ever being paid to the IRS. Keep in mind that the IRS never initiates correspondence with taxpayers via e-mail. There have been fraudulent attempts to extract personal information under the guise of collecting information “from the IRS.” Any IRS e-mail notices should be suspect, so do not respond to any e-mail before calling the IRS at 800-829-1040 to verify validity. This year has been an especially bad year, with many fraudulent e-mail notes soliciting information by promising tax refunds. When you receive the IRS mail correspondence, look at both sides of any pages carefully to determine any action needed. Look at the back of the letter/explanation. One taxpayer called and said he received a letter stating he had $3,750 additional (unreported) income and he owed $5,000 in tax. The back of the letter contained the explanation of another $11,500 of unreported income that he completely missed! Find the tax year to which the correspondence refers – frequently it is for a past year, not current. Read the text to see what is at issue, and compare it to your tax return for the year in question. Sometimes you may agree with the information and no further action is necessary. However, if you do not agree, you may need to take the necessary steps to get the issue resolved, which may include writing to the IRS with specific documentation to support your claim. If you need to respond, ALWAYS keep copies of all correspondence. Instructions should be clearly spelled out within the correspondence, including phone numbers and who to contact for further assistance. If you have worked with a tax professional, promptly contact him/her when any correspondence is received and before responding. A tax professional is familiar with the IRS and can help you. In the 35 tax seasons I have been preparing 1040s, I have found that more than half of the IRS notices that assess additional federal tax are incorrect. I advise my clients to never ignore an IRS notice, but also to not immediately assume that the IRS notice is correct. I have my clients send me any correspondence they receive from the IRS immediately. Tax professionals are experts who keep up-to-date year-round on tax law changes. I have been an accountant for over 35 years and am a proud member of the National Association of Tax Professionals (NATP). NATP is a nonprofit professional association founded in 1979 and provides professional education, tax research, and products to its members. The national headquarters, located in Appleton, WI, employs 43 professionals and 25 instructors. NATP exists to serve professionals who work in all areas of tax practice and has more than 18,000 members nationwide. Members include individual tax preparers, enrolled agents, certified public accountants, accountants, attorneys, and financial planners. The average NATP member has been in the tax business for over 20 years and holds a tax/financial designation or a college degree. Learn more at www.natptax.com. Please keep us in mind for all your tax needs. We can be reached by phone (770) 516-5987 or email. Diane Offutt – President |
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