What if you’ve discovered errors or omissions on your IRS tax return? How should you handle a mistake on your IRS tax return and subsequent communications from the IRS? It is not uncommon for the IRS to catch a simple math error on a US tax return. In many cases, the system will simply correct the error, and send you a letter stating the issue and asking for a small payment. If so, it might be fine to submit that payment and move forward.
However, in many cases today the IRS begins many reviews and ultimately IRS audits by sending what looks to be a fairly standard and unimportant letter. Nothing could be farther from the truth – especially if they are asking for additional information or documentation. It is rarely in the best interest of a US taxpayer to communicate directly with the IRS. Most taxpayers wish to appear cooperative and “honest” by providing far too much information in their response to letters from the IRS. It is important to remember any and all information you provide to the agency will be used against you. It is also important to factor in another consequence: Any changes in the IRS return are immediately and directly communicated to California (and other state) tax agencies.
These letters have one purpose: increase the amount of taxes the IRS is able to collect from you. The IRS tax attorneys at Allen Barron have decades of experience representing US taxpayers before the IRS and California tax agencies. What appears to be a minor communication can lead to a full and expensive IRS audit. If you have been contacted by the IRS or a California tax agency with questions about a tax return it is best to take a deep breath, and contact our experienced team for a free consultation at 866-631-3470.
The combination of our legal and accounting services allows us to extend the protections of the attorney-client privilege to our clients. This protects all of your personal information and the issues we discuss. These protections are not available through a typical tax preparation service or your local accountant, CPA or bookkeeper. How should you handle a mistake on your IRS tax return or a letter from the IRS? When dealing with the IRS the old maxim applies: It is better to be safe than sorry. It’s also much less expensive.
