What to Do When IRS Sends You Certified Mail
Most people read the communications and then decide to call IRS themselves. After all they know more about their tax situation then anyone.
This may be true; however, you should know that IRS may ask you any number of questions, like who do you bank with? Who is your employer? What is your cell phone number? They may ask you to complete a Form 433 over the phone. All of this is innocent enough, just one problem. It is a serious crime to lie to a Federal Agent and that includes IRS Agents.
Of course you will want to say, dont have a bank account or you might want to give them your old bank account information. Or worst, you may not provide ALL of your income information. Either way, you may have committed a crime.
Many Tax Professionals encourage their clients NOT to call or communicate with IRS for any reason. And this may be a good policy. If the Tax Professional says; Im not sure where my client banks he/she is more then likely telling the truth.
Regardless of how much you think you understand. If IRS sends you a CP2000 (thats what we call a paper audit) run, not walk, to the nearest qualified Tax Professional, especially if answering their questions will result in a higher tax liability for you.
IRS has become more friendly in the pass years; however, dont take their kindness for weakness. You could very well go out for dinner and be embarrassed because your credit card, that is tied to your checking account, has a zero balance due to an IRS levy.
If your payroll check was automatically deposited into your checking account you may have a problem. And all that time, IRS was really friendly, even when they sent you that 30 day notice of intent to levy! You know, the one you signed for and forgot to open!
Cassandra Ingraham is a Tax Accountant and Instructor for Basic Tax Classes in the San Francisco Bay Area. You can find Online Tax School information as well as information on filing back taxes, business loans and accounts receivable funding at http://www.taxeswilltravel.com
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