If you have ever received an IRS Notice in the mail, chances are it has caused you a fair amount of anxiety. After all, the IRS is not known for sending out friendly reminders. But what do these notices actually mean and why do people receive them? Let’s take a look at the most common reasons for receiving an IRS Notice.
Making a Mistake on Your Tax Return
One of the most common reasons taxpayers receive an IRS notice is because they made a mistake on their tax return. This could be something as simple as entering an incorrect Social Security number or forgetting to report income from a side job. The good news is that these types of mistakes can usually be fixed with a simple correction letter from the taxpayer. However, it’s important to understand that even if you make changes to your return, there may still be additional taxes due or penalties imposed by the IRS.
Unreported Income
If you fail to report income on your tax return, you can expect to receive an IRS notice informing you that there are additional taxes due. If this happens, it’s important to respond promptly and take action to get your taxes back in order before any additional penalties accrue or interest begins accumulating. It’s also important to note that even if income was reported inaccurately on your W-2 form by your employer, it is still your responsibility as the taxpayer to ensure that all income is accurately reported on your tax return.
Tax Liens & Levies
The most serious type of IRS notice is one related to unpaid taxes. If you owe back taxes and don’t take action quickly enough, you may find yourself receiving a notice informing you of an impending lien or levy against your assets and property in order to satisfy your debt obligations with the government. The best way to avoid this situation altogether is by paying any outstanding balances owed as soon as possible so that no additional penalties will accumulate over time and further complicate matters.
Receiving an IRS Notice can be scary but understanding what it means and taking appropriate action can help alleviate some of the fear associated with this process. The three main reasons taxpayers receive these notices are making a mistake on their tax return, failing to report income, or owing money in back taxes. Pay attention when filling out forms and filing returns—it just might save you from getting an unpleasant surprise in the mail! And if you do end up receiving one of these notices, contact a trusted accountant in Mount Laurel for help understanding what actions need to be taken next so everything can get squared away quickly and efficiently without further penalty or hassle from the IRS.
Schedule your consultation today!
309 Fellowship Road, suite 200
Mount Laurel, NJ 08054
Tel. 973.840.7350
Fax. 347.344.6942
Comments(0)