The IRS sent me a notice—now what?

It can be very scary to get a letter from the IRS in your mailbox, but the most important thing is to deal with it as soon as possible. Remember, there are many reasons the IRS might be contacting you, and many times it can be taken care of quickly and painlessly!

The notice should give you specific instructions on what action you need to take. The good news? Your CPA can communicate with the IRS on your behalf, as long as he or she has a signed power of attorney (Form 2848) on file. This power of attorney gives your CPA the authorization to represent you before the IRS. According to the IRS, Form 2848 “authorizes the listed representative(s) to receive and inspect confidential tax information and perform all acts that you can perform with respect to matters described in the power of attorney.” You can revoke the power of attorney at any time. The best advice we can give is to call your CPA immediately if you get correspondence from the IRS or your state department of revenue—he or she can then decipher what is going on and give you specialized advice on how to deal with the notice.

Something else you should know—IRS notices and letters are always sent by mail. The IRS does not correspond by email, so if you get an email that says it’s from the IRS, it’s probably spam.

Remember, the notice may not turn out to be the doomsday scenario that you may imagine it to be—it could be a simple correction to your account or something that needs more clarification. For more information on dealing with IRS notices, check out this IRS article!

In accordance with IRS Circular 230, this newsletter is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose.

On November 20, 2012, posted in: Tax & Accounting Tips by