Essential IRS Related Tax Tips and Answers

Essential IRS Related TaxBy Rob Wiegland, Staff Writer

Taxes. Just the word can fill people with anxiety, but the truth is, with careful planning and excellent record keeping, most tax troubles can easily be avoided. Here are some tips for some of the most common sticky tax situations and tax related questions

I’ve Received A Notice from the IRS, What Should I Do?

First of all, it’s important not to panic. The IRS sends millions of letters and notices to taxpayers each year, to request payment of taxes, notify them of account changes, and request additional account information. Each letter should offer specific instructions that will help you to satisfy the inquiry. If you agree with the correction to your account, or the request made, there is no need to send a reply, just the payment due, if any.

If you disagree with the correction, etc, you should simply respond, stating why you disagree, and include any documents and information that you would like the IRS to consider, along with the bottom portion of the notice, and send it to the IRS, allowing up to thirty days for a response. Keep in mind that most questions and/or disputes can usually be resolved with a simple phone call.

I Am Unable To Settle My Dispute With The IRS On My Own, What Is The Next Step?

The Taxpayer Advocate Service, an independent organization located within the IRS, assists taxpayers with IRS related problems. This service is free, confidential, and is also tailored to meet your needs, and is available for businesses and individuals. You may be eligible for, and consider applying for assistance if:

You are experiencing economic harm or incurring significant costs due to fees for professional representation, etc. This may include, but is not limited to, inability to provide for necessities such as food, housing, or transportation expenses. You have experienced a delay of more than 30 days in the resolving of your tax issue You have not received a response or a resolution to the problem by the date that was promised to you by the IRS.

What Should I Do If I Need More Time To File My Taxes?

The good news is that if you are unable to meet the April filing deadline, the IRS will grant you an automatic six month extension. To take advantage of this, you must file an Application for Automatic Extension of Time to File U.S. Individual Income Tax Return by the April deadline. This extension will give you extra time to submit paperwork, but will not extend the time you will have to pay taxes due. You can also ask for an extension electronically, and choose to pay any balances due by authorizing an electronic funds withdrawal from your personal checking or savings account.

Dealing with the IRS and with tax related matters may seem intimidating, but the good news is that it doesn’t have to be.