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 Money Matters :  Taxes

Standing Up to the IRS... Page 2

continued

Almost half the notices sent by the IRS are in error, at least in part. So don’t panic when the IRS writes to you. Read the notice carefully, then follow these five simple rules.

Rule 1: Don’t hide your head in the sand

Do not ignore the IRS – they won’t go away. The IRS computer is programmed to send you a notice every few weeks. Those notices will escalate, each one more threatening, until finally they put a lien on your bank accounts.

Rule 2: Sooner is better

The only way to stop the IRS notices is to respond, and the sooner the better. If you don’t respond within ten days, you’ll get another notice. If you telephone, be prepared for busy signals or a long wait on hold. And to be sure you have a record of your response, follow that phone call up with a letter.

Rule 3: Keep it simple, stupid

The IRS employees are overworked and not interested in reading a long, verbose explanation of your situation. Write your letter simple, grade-school terms, sticking to the facts and providing all the documentation needed.

Rule 4: Stay the course.

If at first you don’t succeed, try, try again. That applies in spades to dealing with the IRS. Your initial response may cross in the mail with the second IRS notice, so send them another letter with another copy of all necessary documentation. If you receive a third notice, it’s time to telephone the Problem Resolutions Office. Get the name of the person you talk to, and send them a copy of your correspondence and documentation.

Rule 5: Call out the big guns if necessary

If you follow these rules, but the dispute still escalates, it’s time to pay for some professional help. A tax adviser who works with the IRS on a regular basis can help you resolve your problems if you can’t get the IRS to understand and respond favorably to your communications. 


The Women's Institute for Financial Education (WIFE) is a non-profit organization which provides financial education, networking opportunities, seminars, and workshops for women of all ages.


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