The words of advice have been shouted by firefighters, spoken by presidents and written in "The Hitchhiker's Guide to the Galaxy": Don't panic! An investment adviser and syndicated columnist addresses those wise words to people who get letters from the IRS, urging them to remain calm even when holding a missive from the most dreaded government agency.
Columnist Terry Savage adds that in addition to keeping your wits about you, you should also do something else: "Don't ignore that notice!" While it's possible that the IRS has contacted you by mistake, it's also quite possible that the agency is raising a serious tax issue -- such as an irs audit or tax debt or other matter -- that must be addressed by you. If that's the case, Savage advises that you immediately contact a tax attorney so that you can promptly and effectively respond.
She also reminds her Chicago readers that the IRS doesn't contact taxpayers by phone or by Facebook or any means other than the mail. So if you get a phone call or social media message from the "IRS," it's actually from someone else -- likely trolling the water for a scam victim.
Most important, though, is if the IRS is claiming that you have done wrong in some way on past returns or reports on overseas accounts or other matters. "Whether it's a demand for back taxes, or a notice of examination, you don't want to go into this without professional help," Savage writes.
She also says you should examine the letter carefully. Have you already been assigned an IRS agent? If so, the matter is more serious than a mere form letter.
Begin gathering your tax and income documents, she writes. The more documentation you pull together with your tax attorney, the more your lawyer will be able present and otherwise use on your behalf.
Lastly, she writes that you should learn your options for resolving the dispute. Obviously, your tax attorney will be critical here, helping negotiate a reduction in amount owed or a payment plan or even representing you in tax court, should that be necessary.
