Ray recently received a letter from the IRS, saying that he underpaid his 2017 taxes by a few thousand dollars, which he wants to dispute. What are his next steps? Can his tax professional help him resolve this dispute with the IRS?
For starters, Ray shouldn’t panic. Instead, he should consult a tax professional to discuss his situation. If Ray has the records at hand and agrees with the IRS assessment, he can simply pay the amount required in most cases.
If he disputes the assessment, he can mail a letter to the address on the contact stub at the bottom of the notice, explaining why he disputes it and include information and documents for the IRS to review when considering the dispute. The IRS will typically respond within 30 days.
Most cases can be resolved with these steps. If Ray wants to continue his dispute after receiving a letter back from the IRS or needs to appear before the IRS, he may choose to do so with an enrolled agent who is federally licensed to represent taxpayers during an IRS collection, audit or appeal.
Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.