The IRS sends notices to millions of taxpayers every year, but there is no need to panic. There are 8 things you should know if you get a notice or letter from the IRS.

1. The last thing you want to do is panic. Most letters or notices can be dealt with very easily.
2. The IRS could send you a letter for any number of reasons. They could be from payment requests to changes on your account to requesting more information from you. The letters can also mean you need to contact them for account-specific reasons.
3. Every notice from the IRS gives instructions about what needs to be done regarding your account.
4. For correction notices, you may want to review the letter and make sure everything corresponds on your tax return.
5. You only need to reply to a correction notice if you you owe a payment, but not if everything else is correct in the notice.
6. If you disagree with a correction the IRS has made, you need to contact them right away. Doing so in writing is best, and explain why you disagree, and include any documentation that supports your claim. Tear off the bottom part of the notice and send it with your letter to them. Please wait at least 30 days to hear back from the IRS.
7. Generally, you can take care of any notices without having to call or write the IRS, but if you have any questions, you can call the number that is on the upper right corner of the notice. Have your tax return and the letter with you when you call.
8. Make sure to keep all letters and notices you receive from the IRS and keep them with the copies of your tax returns.

If you have questions or want more information about IRS notices or bills, you can look at Publication 594, The IRS Collection Process. Publication 17, Your Federal Income Tax For Individuals, offers information about penalties and interest. You can find both at irs.gov or by calling 800-829-3676. You may also want to speak to a tax professional.

Daniel Stoica Accounting Professional