What to do When You Get a Letter From the IRS

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When you get a letter from the IRS, your reaction may not be the same as others. Some people get very nervous and scared, while others barely feel any emotion. Your reaction depends on your attitude toward the IRS and what you think they’re capable of doing to taxpayers. Here are several options if this problem happens to you.

Do Not Panic

Panicking is never the right move to make. Getting your blood pressure up and making yourself unwell will not solve the problem. First, always remain calm, even if you have no money, no job and no lawyer to get through the situation.

Review the Options Outlined in the Letter

Review the options that were outlined in the letter. Know what the IRS wants from you and wants you to do next. If they want a response, consider responding. However, consider all of your options first. What the IRS wants you to do is in their best interest and not yours.

Review All of Your Options

The IRS usually contacts someone who owes back taxes that must be paid immediately. However, there’s no law that says you have to pay all of the money back at once. There are tax debt relief companies that give more options than the IRS does. They work directly with the IRS to arrange monthly payments for these benefits:

  • Make Payments Affordable
  • Make Payments Convenient
  • Prevent Additional Tax Fines and/or Imprisonment
  • Improve Credit

Consider working with this type of company if money is an obstacle. Even if you owe $100,000 in back taxes, it’s possible to make arrangements for reducing these debts.

Contact a Tax Lawyer

Another option is to contact a tax lawyer for advice or representation. It’s the least affordable option, but it may be the most effective one. This lawyer has read many letters from the IRS and negotiated with this company before. You can dispute the claims that are being made in the letter, if possible. Some people have managed to make some kind of favorable arrangement with the IRS, but only with the help of lawyers.

Getting contacted by the IRS is never a positive situation. It’s important that you do not focus on what went wrong or what will go wrong. Focus mostly on taking the next right step with a tax professional’s help. Avoid getting contacted in the first place by preparing your taxes properly. Use online Taxfyle software that lets you file in a few hours or less and move on with your life.