When your budget won't let you give gifts to everyone in the world—which is always, by the way—who should you give...
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Every year at tax time, Dave and his team are flooded with calls and emails from people who have been contacted by the IRS. Many of these people are scared because they don't know what to do, so they think ignoring the problem will make it go away.
If you get a letter from the IRS, here are three things you need to do:
Local experts you can trust.Find an ELP
A letter from the IRS isn't always bad news. But if there is an issue, the first step in resovling it is finding out what the issue is. Different IRS letters have different time frames to respond, but you usually have about 30 days—so don't waste any time. Ignoring the problem won't make it go away.
Decide if you need help.
You can get help by contacting an Enrolled Agent, CPA or a tax attorney. They can help you understand your situation and represent you if you have to meet with an IRS agent.
Prepare for your meeting with the tax advisor.
Bring your letter from the IRS and any important papers you may need (tax returns, paycheck stubs, etc.). Use your time with the tax advisor wisely, and you might be out of trouble quicker than you thought possible.
On a final note, if the IRS says you owe money, don't assume they're right. The IRS makes mistakes more often than you might think. Here's proof from a listener:
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"Dave, I got a bill from the KGB (IRS) yesterday saying I owed $9,000 because of a mistake on my taxes. I panicked and called your tax ELP, and within 20 minutes he figured out the problem and was walking me through how to fix it. The IRS actually owes me money! I hired him to amend the return. Thanks for this service." –Krysha
Krysha did the right thing. She hired a great tax expert and prepared for the meeting. The tax expert double-checked the IRS's math, and it paid off big-time! Computer tax programs can't do that, can they?
Need help with your taxes? Connect with a local tax expert Dave recommends.