Walking out to check our mailbox is not what it used to be. Back in the day, we might be excited to find a card from a loved one or a letter from a friend. Now, more often than not, our mailboxes are full of political mailings and bills. If we are very unlucky, we might even find correspondence from Uncle Sam.
A letter from the Internal Revenue Service (IRS) is something to take seriously. It is important to open it, read it, and note any dates. These mailings often have due dates and a failure to respond within the given timeframe can impact your options moving forward. In some cases, the mailing may simply be informational. In others, it could be notification of an official tax audit.
One of the first questions people have when they find out they are subject to a tax audit is something along the lines of “how is this going to end?” It is common to spiral into visions of IRS agents in black suits and sunglasses knocking on the door and gathering boxes of paperwork. That specific scenario is highly unlikely. A tax audit can go in many different directions. Three of the most common include the following.
#1: Provide information and move forward
Some may receive a request for information, such as certain documentation. The issue may seem relatively small, so they decide to provide the information and maybe pay a nominal fee. In cases with smaller amounts, this can work well.
#2: Ask for more time
There are instances when the IRS will allow a taxpayer to request additional time to review the matter. Review the letter from the IRS carefully. It should include information on how to request an extension. The agency often allows for a 30-day extension, but it is important to make sure the specific issue qualifies.
#3: Fight back
Taxpayers in the United States have certain rights, including the right to fight back if they disagree with the IRS’ findings. The attorneys at Goldburd McCone have experience representing individuals and businesses in matters against the IRS. They can represent your interests during dealings with the IRS and help to better ensure a more favorable outcome.