When do you need IRS tax help?
Or put it another way, when should you get tax help from the IRS and when do you need tax help to protect yourself from the IRS?
Every year there is a survey done on how accurate the IRS is when you call in with a question. Unfortunately, their batting average isn’t very good, barely accurate more than half the time. And, worst of all, if you rely on the advice you get over the phone and it’s later proved to be wrong, you still have to pay the price of extra tax, penalties and interest. If their bad information results in a material misstatement on your return, it could even be considered fraud.
So you can’t always count on the IRS phone answerers to know the right answer.
How about the computer notices that you might get from the IRS? There has been a flurry of notices recently sent out with penalties alleging late filing. A lot of them have it wrong. If you get one, respond quickly, and in writing, with a letter showing proof of mailing of the timely filing and extension application. (Good reminder to always get proof of mailings to tax agencies or, for that matter, any mailing to a governmental office.)
We’ve also seen goofs with the K-1 matching program and W-2 matching for employers.
Research thoroughly and respond quickly if you get a notice. Get expert advice where needed. If you’ve got a specific tax question, please post on our USTaxAid.com forum. And to find out about becoming a client, Contact Us.