Getting a letter or notice from the IRS can be upsetting, confusing, and unnecessary. The IRS sends taxpayers notices to request payment for taxes, to notify them of a change to their account, or to request additional information. Attention to the following details will reduce the likelihood that you will become pen pals with the IRS.
1. Always address what a payment is for when submitting to the IRS.
If your payment is not tagged correctly, the IRS may apply it in any manner they want. = All payments should include:
- Your name
- Your taxpayer identification number – SSN if paying for individual
- The type of tax you are paying
- The period the tax payment is for
2. Make sure that the name and social security number on your tax return matches the Social Security Administration’s records.
If you change your surname, notify the Social Security Administration and request a new social security card.
3. Don’t claim a tax exemption for your any children unless you are allowed to do so.
Special rules apply to divorced parents. If both parents claim the child as a dependent, both returns will be subject to further IRS review.
4. Always respond quickly to any IRS notice, even if you think it is outdated or incorrect.
If the IRS doesn’t hear from you within the time specified on their notice, you may lose the right to protest any changes made to your return.
5. Send a change of address form (Form 8822) to the IRS when your address changes.
If you fail to provide the IRS with your current mailing address, you may not receive a refund check or a notice if there are problems or adjustments to your return. And even if the IRS can’t find you, penalties and interest will continue to accumulate on any tax due.
For assistance with any tax concern you have, give us a call.