RALEIGH, N.C. (WNCN) — What should you do if you get a letter from the Internal Revenue Service?
The most important things: Don’t panic — but don’t ignore it, either.
IRS officials on Thursday provided a rundown for those who might receive a letter from the agency this tax season.
They say those letters are sent for several reasons, including:
— A balance is due.
— They are due a larger or smaller refund.
— There is a question about the tax return.
— They need to verify identity.
— The IRS needs additional information, or changed their tax return.
So here’s what you should do:
DON’T IGNORE IT
Most of them have to do with federal tax returns or tax accounts, and the letter will explain the reason and give instructions.
The IRS says its authorized private collection agencies usually contact taxpayers by mail, and most of the time all you need to do is read the letter carefully and do what it says.
READ IT CAREFULLY AND COMPLETELY
If the IRS changed your tax return, you should compare the details in the letter with your original return. You usually don’t need to contact the IRS if you agree with the notice.
But if you do need to contact the IRS, you should do it promptly to avoid a delay in having your return processed.
PAY WHAT YOU OWE
Even if you can’t pay the full amount, you should pay as much as you can. The IRS says it offers several payment options, and you can apply for an installment plan or an offer in compromise that allows you to settle your tax debt for less than you owe.
KEEP THE LETTER
Don’t throw it away. You might need it later.