Letter from the IRS

Not too long ago a client called to inform me they received a letter from the IRS. I could tell by the tone in their voice they were worried and anxious. First, I encouraged them to relax. I know the situation can be unnerving and stressful, but remember they are people just like you and me. Next, I suggested to open up the lines of communication and call them. The last thing you want to do is avoid the IRS. Get a sense of what they are asking of you and what specifically they want you to do should you agree or disagree with their findings. 

If you ever find yourself in a situation like my client, here are some must-do tips. 

• Document everything. I mean everything. 
• If you are communicating via phone, note the date, time, and who you spoke with as well as what was said in the conversation. 
• Correspondence by mail, I highly recommend having means to prove your documents were delivered timely to the appropriate address. This can be done with a tracking number from your favorite mail carrier. Save a copy of your cover letter and supporting documents. 
• If you are faxing documentation, obtain a successfully transmitted receipt along with a copy of the documents that were sent. 

I wish it were innocent until proven guilty with the IRS, unfortunately, it is guilty until proven innocent. The more evidence you have, the better.