First Contact By The IRS
Your First Contact By The IRS.
7 Things to Be Aware of When Approached In Person or By Letter with the IRS
— There are over 200 different types of IRS Notices and Letters that you might receive that will always start with the Notice or Letter form number “CP” Generally, these Notices and Letters are very distressing to receive and they are equally vague and ambiguous about the specific nature of the communication. Once you do get a Notice or Letter, that beings with “CP”, you should immediately contact a qualified tax attorney to assess your situation. Generally, you will only have 10 days to make a very detailed response and that 10 day period may well include a week-end, holiday day, or days that you are away from home. Starting an audit or examination with a delinquent response is not the way you want to begin a lengthy communication process or audit! First impressions do matter in these cases!!!
— Since I first began working in taxation, the IRS has continually noted its efforts to make these Notices and Letters clear and specific. To date, these communications are difficult to understand even for professional tax personnel. Just this September the IRS the IRS stated it ‘…is in the process of redesigning and revising its correspondence with taxpayers for clarity, effectiveness and efficiency. The new format includes a plain language explanation of the nature of the correspondence, clearly states what action the taxpayer must take and presents a clear, clean design.”
— The proof everything on your tax return is on you, not the IRS. Proof of mailing a timely filed tax return is on you, so always mail the return via certified or with some proof of mailing. All amount on the tax return, you bear the burden of proof.
— When you go through the act of signing the tax return, you might not see the small print below your signature line, “Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.” You really don’t want to perjure yourself!
— The IRS will always be happy to communicate with you, but remember that anything you say or give to the IRS will be used by them to determine whether you should pay additional tax. Once you make statements or provide documents, a tax attorney or any other representative, is like starting a race with cement shoes and will make good representation difficult and your chances of supporting your tax return will be jeopardized. Do not think you can represent yourself; the IRS are professionals with heavy experience which presents an uneven playing field.
— Your contact may not be by Notice or Letter, Field Agents are allowed to come to your door, office or residence, unannounced and begin the questioning process based on “plain view doctrine” such as the type of home you live in, your car license plate yields excellent financial information through DMV, mail in your mail box may show bank information or financial information.
I can not say this enough, if you get this “CP” Notice or Letter, call us immediately.