Have you ever heard stories about people being surprised by bills from the IRS appearing in their mail? While there are definitely some scams that try to trick people into paying money they don’t actually owe (to a source that masquerades as being the IRS), there are also plenty of scenarios in which you will receive a legitimate surprise bill or notice from the IRS.
What should you do if this happens? Here are some important tips from our tax service in Jamestown, ND to keep in mind.
It’s understandable to be surprised and anxious if you get a bill from the IRS, but panicking won’t help anything. It’s important to take a moment to think rationally and determine what steps you can take to check on whether or not this is a situation in which you do actually owe money.
Go back over your documents
A lot of times a simple error made in filling out a document could prompt the IRS to get in touch. In this case, the problem is actually quite simple to resolve.
Before you do anything else, go back over all the documents you’ve submitted to the IRS and double check that everything was accurate. Be sure to compare your forms against your W2s, and if there are any inconsistencies or errors, get in touch with the IRS right away to clear those up.
Get some pros on the case to negotiate
A tax resolution firm can be a big help in dealing with the IRS on your behalf when you’re contacted to pay additional taxes. You simply don’t have the experience or knowledge necessary to take this on yourself.
Your tax resolution firm will do a variety of things to negotiate on your behalf. It will investigate the possibility of penalty forgiveness, for one. Some recent changes to the tax code resulted in taxpayers owing money to the IRS when they could have reasonably expected big refunds in previous years. This has left taxpayers with some big-time surprises in their mailboxes. The IRS has been waiving some underpayment penalties and interest for some people who are in this boat.
Your tax resolution firm will also seek different payment arrangements that make more sense for your financial situation. The IRS understands that many taxpayers won’t be able to pay in full right away, and are willing to set up more affordable payment plans that allow you to meet your obligations over a more extended period of time. Professional tax resolution teams will be able to advocate for your best interests with these plans, and also know the best negotiation tactics that make such repayment plans a legitimate possibility.
With all of this in mind, it’s important that you reach out to a team of highly skilled tax professionals who will be able to advocate for you and your best interests if you suddenly receive a surprise bill from the IRS. If you’re interested in learning more about the options you have available to you, we encourage you to reach out to Craig S. Hanson, CPA today to schedule a consultation appointment with our tax service in Jamestown, ND.