Visiting your mailbox can be fun and exciting – birthday cards, pictures of grandchildren, refund checks, and good coupons. However, receiving a notice in the mail from the IRS or Iowa Department of Revenue tends to cause immediate stress and sleepless nights.
The following is a general list of steps to take when you receive an IRS or IDOR notice.
- Do not ignore the notice. The longer you wait to respond, the more difficult it is to solve the problem.
- Determine who sent the notice; IRS or a state taxing authority.
- Determine if the notice is authentic (not a scam).
- Read the notice and determine why the IRS/State sent the notice.
- Determine what tax year the notice is for.
- Review copy of your tax return for the applicable year and compare it to the IRS/State notice.
- Do not automatically send any requested payment to the IRS/State without fully understanding the notice. In some cases, the IRS/State notices are not correct. Additionally, do not send the requested payment until you determine if the amount you owe can be reduced.
- If you are unable to determine what the issue is call the accountant who prepared the tax return, if applicable.
- If the notice is correct and you are unable to pay the requested amount determine if other payment methods are available.
If you need assistance in any of these steps, BMP-CPA is here to help!