It is important to know what to do if you receive an IRS letter or notice. Denial, avoidance, and procrastination are all activities in which an individual may engage when faced with something that he or she would rather not deal with or do. However, such coping tactics are almost always sure to backfire and make an unpleasant or difficult situation even worse. This is especially true in cases where an individual receives communication from the Internal Revenue Service.
Anyone who opens their mailbox and sees a letter from the IRS is likely to panic. Whether an individual chooses to throw the sealed envelope away or simply disregard its message, ignoring the IRS can end up costing an individual hundreds to thousands of dollars in fines and, in some cases, a whole lot more.
Annually, the IRS claims to send “millions of notices and letters to taxpayers for a variety of reasons,” some of which may be minor or even positive in nature. Even in cases where an individual knows that he or she failed to file or pay taxes or expects bad news, it’s important to open an IRS letter or notice as soon as possible and to contact the agency with any questions. This is especially true in cases where an individual believes that the IRS erred and an individual plans to dispute the issue in question.
In the event an individual takes no action to address or rectify the matter addressed in an IRS letter with a tax due and in need of tax debt relief, he or she may face fines, liens, garnishment of wages, property seizure and even criminal charges. In cases where an individual is in trouble with IRS or plans to contest an IRS matter, it’s a good idea to contact a tax law attorney. Therefore, knowing what to do if you receive an IRS letter or notice is important since your legal rights are st stack, and the quicker your obtain a tax professional, the better the results will be.