With tax season now behind us, if you get a letter from the IRS, don\u2019t hit the panic button. Yes, the IRS is a seemingly scary organization, and you\u2019ve probably heard the horror stories about IRS audits. However, there are a number of very common reasons that you might get a letter from the IRS that is not a harbinger of doom and gloom.<\/p>\n
First, most IRS letters are automated, and computer automation isn\u2019t foolproof. Verify that the letter wasn\u2019t sent in error. Check to see if the social security number and tax year matches your information.<\/p>\n
Each letter the IRS sends addresses a very specific issue and includes instructions about any action you need to take. One of the most common reasons for an IRS letter is missing documentation. Perhaps you forgot to include a schedule or form when you submitted your return. Or you may get a notice that the IRS has made a change or correction to your return. Compare the change the IRS is noting to your original return. If you agree, you typically will need to pay the bill, but review the instructions included with the letter to determine if there are other steps required.<\/p>\n
If you don\u2019t agree with the change or correction, be certain to respond\u2026 in writing. Keep a copy of your letter and all documentation with your tax records. If Waddy Accounting\u00a0 Services completed your return, contact us, so we can help you rectify the issue. Whether you used Waddy or any other tax preparation service, always make certain your tax preparer receives a copy of any letter you receive regarding changes to your return. This is especially critical if the IRS notifies you that you owe additional tax and\/or interest and penalties.<\/p>\n
You may also get a letter from your state resulting from changes to your state return. Again, don\u2019t panic. State tax payments are deductible at the federal level, so you may receive a letter from your state after federal updates occur. Additionally, if you move out of your former state, that state may contact you because they are expecting a return from you again. Be sure to update your address with all federal and state government agencies when you move.<\/p>\n
What About an Audit?<\/strong><\/p>\n The best part about working with Waddy as your tax preparation service is that you are working with an Enrolled Agent, and we can represent you before the IRS. Enrolled Agents are unrestricted regarding which taxpayers they can represent, what types of tax matters they can handle, and at which IRS offices they can represent their clients.<\/p>\n Whether or not you used Waddy for your tax preparation, if you receive a notification of an audit,\u00a0contact us<\/span><\/a><\/span>. Don\u2019t go it alone!<\/p>\n IRS Letters Only!<\/strong><\/p>\n Keep in mind that the IRS will\u00a0always<\/em><\/strong>\u00a0notify you in writing\u00a0first<\/em><\/strong>, no matter what the situation is. Tax scams were rampant this year and are continuing with many taxpayers receiving scam phone calls supposedly from the IRS insisting they owe money and will be jailed or fined if they don\u2019t pay immediately. If you receive such a call, hang up and report it to the U.S. Treasury Inspector General (www.tigta.gov<\/span><\/a><\/span><\/span>). Still Need to File?<\/strong><\/p>\n If you have not yet filed your tax return (or filed an extension request), it\u2019s not too late. Yes, you will pay penalties and interest, but the longer you fail to file, the worse you are making the situation for yourself.<\/p>\n So if you still need to file,\u00a0contact us<\/span><\/a><\/span><\/span>. We work year-round and don\u2019t close our doors after April 15th<\/sup>.<\/p>\n In fact, in addition to tax preparation, Waddy provides\u00a0bookkeeping services<\/span><\/a><\/span><\/span>,\u00a0financial reporting<\/span><\/a>,<\/span><\/span> and\u00a0payroll management<\/span><\/a><\/span><\/span>\u00a0as well.<\/p>\n Many people believe that estate planning is only for the very wealthy; however, if you have assets that include real estate, money in the bank, investments, retirement accounts and life insurance, you will benefit from estate planning.<\/p>\n You\u2019ve worked hard to get where you are, so ensure that what you\u2019ve worked for is distributed according to your wishes after you die. By taking time to plan now, that can happen. Estate planning benefits include:<\/p>\n By proactively planning now, you can take steps that may favorably impact your tax and financial picture moving forward, and you can ensure that what you\u2019ve worked so hard for will be distributed as you want<\/p>\n","protected":false},"excerpt":{"rendered":" With tax season now behind us, if you get a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2693","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts\/2693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/comments?post=2693"}],"version-history":[{"count":1,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts\/2693\/revisions"}],"predecessor-version":[{"id":3004,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/posts\/2693\/revisions\/3004"}],"wp:attachment":[{"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/media?parent=2693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/categories?post=2693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.waddytax.com\/dcaa\/wp-json\/wp\/v2\/tags?post=2693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nYou can read more about\u00a0IRS Notices and Letters<\/span><\/a><\/span><\/span>\u00a0or\u00a0Understanding Your IRS Notice<\/span><\/a><\/span><\/span>. Or\u00a0contact us<\/span><\/a><\/span><\/span>. We\u2019re here to help.<\/p>\nEstate Planning: Everyone Needs It<\/strong><\/h3>\n
\nYour estate includes:<\/p>\n\n
\n