Dear APCU Member,
You go to your mailbox, pull everything out, and look for something more exciting than the usual bills and junk mail, and then you see it—
an envelope with the return address “Internal Revenue Service” stamped on it. And this isn’t the one that has the clear window with your refund check showing through.
As you stare at the envelope, your heart starts to race, you break out in a sweat, and you start to pray (even if you aren’t religious) that it’s not bad news. You open the letter and it’s a notice that the IRS is either questioning items on your tax return, or you’re going to be audited. Worse yet, you find out someone stole your identity, filed a tax return in your name, and collected a fraudulent refund!
You might be wondering why you received this notice in the first place since you have a (CPA/EA/Attorney/Tax Professional) preparing your tax return. Here’s the truth—even if you have a professional preparing your tax return, you are subject to being audited for a variety of reasons, one of them being you were selected at random.
In 2021 thus far, the IRS has sent out over 9,000,000 “math error” notices relating to the Recovery Rebate Credits and Stimulus checks regarding the American Rescue Plan. All these notices requires a response.
In 2022, it’s estimated that the IRS will send out 15,000,000 notices regarding the Advanced Child Tax Credit Payments. All these notices will require a response as well.
While we make every effort to prepare your tax return as completely and accurately as possible, oftentimes there are missing items (such as 1099’s), and amounts of stimulus money or child tax credit payments we were not informed of at the time the return was prepared, which will draw the scrutiny of the IRS. Even people who have professionals prepare their returns are audited, or receive notices, and can benefit from our Client Care Package, which includes audit protection.
The fact is the letter the IRS sent you is claiming you owe them money, or claiming you didn’t report something properly, or claiming your refund is going to get reduced, or claiming something you reported shouldn’t have been reported. It’s not a fact. They want to talk to you and ask you more probing questions; are you prepared to answer them? Or what if they say one or even several of your deductions are not allowed to be taken; are you prepared to tell them otherwise?
In a moment I’m going to tell you how to eliminate the stress and worry of what to do when you receive an IRS or State income tax notice, because, let’s face it, when it comes to the IRS, you’re guilty until proven innocent. How are you supposed to make sense of the letter they sent you that can be anywhere from 2 to 11 pages that’s filled with verbiage that’s pretty much intended for an expert to understand?
Sure, you might think, “I’ll just call the phone number on the notice and see what this is all about,” but be prepared that you’re about to start a very long period of wasted time dialing, being put on hold, and even being hung up on. That’s right—you can be waiting on the phone for 60 minutes and then they hang up on you! The IRS calls this a “courtesy” disconnect. Please explain to me what is courteous about someone hanging up on you? This scenario is the “rule”, not the exception.