Letters from taxing agencies can be sent for many reasons. They may be from the IRS, any State agency, any Local agency (think Kansas City).
Here are some Do's and Do Not's??
-
Do Remain Calm: It is advised you don't think the worst and assume your whole tax return is wrong. Most letters are auto generated from an algorithm in the agency computer. This seems to be increasingly rapid rate in recent years.
-
Do Not Just 'Write A Check': The letter may not be correct. Some are informational only, others are requesting more info, you may be a victim of identity theft, many are making adjustments to the return and are seeking your approval.
-
Do Not Ignore the Letter!
-
Do forward the letter to the preparer of the return for the year in question. They can review both the letter and the return to sort out any discrepancies. They will be able to assist you in responding to the taxing agency properly.
-
Do contact KC Tax Prep if the above tips do not work for you. We will review any letter for you to help you understand what they are reporting. If it required more action, we could set you up with a full consultation for a fee. Returns prepared by KC Tax Prep are guaranteed and we will assist you in how to answer the letters as part of our initial service.