IRS Notices – Its Not Easy to Get Rid of Them

Do you owe money to IRS? Are you facing issue of back taxes? If yes, you’re more likely to receive a notice from IRS asking you for money and consequences would also be mentioned in the notice. Sometimes, you receive notice despite paying the tax from your side. This type of notice from the IRS is known as “Notice of Deficiency.” If you receive this notice, it means according to IRS you owe more money to them. IRS examines and analyzes your filing and found that the money has not paid for some of the clauses. Usually, you get time span of 90 days to reply to the IRS else next time the notice might add up a levy on your wages. If you know and are confident that you don’t anything to the IRS, you can choose from several options to stand against the notice.

In case, you don’t call the IRS in regards to the notice they have sent, the money you owe (according to the IRS) will become permanent even if it was an error. Therefore, without any delays you should get in touch with IRS in order to discuss the case and remember, IRS will not provide any kind of extension in the deadline of 90 days. IRS is also managed by human beings like us. Hence, there would be some mistakes. So, you should try to know the loopholes. One of the most common mistakes IRS agents make is putting in your personal information on the notice such as name address and contact numbers and notice reaches at someone else’s place and receive it after a month or so. In this case, you can file a petition with Tax Court. You should use Form 12203 to file any petition. You will then get trail date for your case. In the meantime, you can arrange all the required documents such tax relief documents and invoices for your expenses.

In the tax court hearing, if you prove that you receive the notice late because it was sent to wrong address or any other issue, court will dismiss the case and IRS would need to start the processing all over again. It means you can easily handle the notice this time as you already know what information IRS is looking for. So, you can prepare yourself and collect all the necessary documents to discuss the case with IRS. You must be thinking that now you know how to nail down the IRS when you don’t receive notice in time. However, it is not as easy as it seems to be. You should have considerable proof that it was mistake from IRS not from your side. In case, tax court finds that the proofs you’re submitting not so strong, IRS wins and you owe whatever IRS wants. The worst part is that you can do nothing about it. Therefore, it is always recommendable to hire an experienced tax professional before filing a petition against any notice from IRS.