Nothing could ruin a perfectly normal trip to the mailbox more than a greatly unexpected letter. If you have received a letter with a big I.R.S. stamped in red on the front try not to panic. Don’t automatically assume it is a business tax notice about to levy your account. Here we will try to explain what to do if you get a notice from IRS collections.
What To Do If You Get A Notice From IRS Collections
Step 1: Pick Your Stomach Off The Ground
After your stomach drops to the floor try and take a few deep breaths. Each year the IRS and other state tax agencies send millions of business tax notices to owners like you, delving out little letters of sheer panic in the mail. Thankfully the majority of these notices are automatic and are typically harmless.
Step 2: Read The Notice Carefully
Read both the front and back carefully. Make sure you understand what it has to say and what it is concerning. Typically these are merely automatic notifications that do not require any action on your part. If this notice is because of a tax mistake on your part be sure to understand the situation clearly.
Step 3: Recognize The Sender
Both the IRS and the state tax agency can send you crucial business-related tax information. Depending on your state, either could be sending you panic via snail mail.
If you question the validity of the notice in question, it is a good idea to contact the agency that sent the notice.
Step 4: Identify The Type of Notice
There are several different types of IRS notices and the most urgent being an IRS collections notice. However, the collections notice will give you all the information you need to process and resolve the issue.
Step 5: Respond Before The Deadline
Once you understand the situation, you should respond immediately. Typically the IRS gives business owners a 30-day deadline for avoiding further action from IRS collections. But it is important to act fast if you receive a business tax notice. If you are still confused, write down your questions and call the corresponding agency. The number for the IRS collections agency will be listed on the notice itself.
Please keep in mind this PayWow blog is purely information and it is not official tax advice. While this blog provides a general guideline for handling business tax notices and IRS collections notices, it is always best to consult a tax advisor or CPA about your specific situation.