Taxes
Dealing With The Internal Revenue Service
The mail has arrived and oh, no there is a dreaded letter from the IRS. Don?t panic yet, it maybe something as innocuous as information they think you might need, a question of where to apply a payment you made or even a refund check for an overpayment. But should it be more serious, all is not lost.
What to do should you get a notice of a payment due? First and foremost, make sure you really do owe that payment. The Internal Revenue Service is a very large organization and since they have people working for them, sometimes they make mistakes. So read the notice carefully, check your records to ascertain whether or not you have already paid the amount being requested, and whether the check has cleared.
Sometimes they are looking for a return not received. That doesn?t mean you didn?t file the return, it means they have no record of receiving it. Locate your copy (always, always keep a copy of your dated and signed return). Find the post office receipt that proves you sent in your return. You know that green card that the post office returns to you proving that you mailed something to the IRS on a particular date. Of course that ?something? might have been an empty envelope not an envelope with your return enclosed. One thing that could point to the return actually being in the envelope is that a check for payment was sent with the return and the check had cleared your bank account.
If you cannot prove a timely filing than your next step is to contact the agent listed on the letter. You may want to do this yourself, however it is probably a better idea to enlist your accountant?s or tax preparer?s help. These people have the experience to handle these situations in the best light and to your best advantage. If, however, you personally meet with the tax agent, please remember to be polite and upfront. And do not be late for your meeting. Provide the records they ask for, and answer the questions they ask truthfully and directly. Remember they are people too, and if treated with respect they will respond in kind.
There are a few things you can do in advance to make sure any future IRS dealings go more smoothly. Of course the first is to make sure you follow the rules. And one of those rules is to keep clear, complete, and accurate records. Remember the article about ?shoebox clients?. It is the business people that don?t take the necessary steps to keep a good set of books that get in the most trouble. If you think hiring a bookkeeper or bookkeeping service is expensive, wait until you try to go through an audit with unorganized financial records.
Copyright 2006 Bookkeeping R Us All Rights Reserved
Donna MacMillan
Tags: IRS, bookkeeping, financial records, tax audits, shoebox client, tax returns, tax penalies, taxesSimilar articles
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