Letter From the IRS_ Don’t Panic!
We are aware that as a business owner, the thought of receiving a letter from the IRS can be an unpleasant one. At Bedrock Business Builders of New York, we encourage you to take a deep breath and remember a few key points when receiving correspondence from the Internal Revenue Service to help you stay focused.
First and foremost, do not panic. There is no benefit in getting yourself worked up before you know what you are dealing with. Contrary to what many people may think, not all letters from the IRS are to collect a debt. But even the ones that are can be addressed without over-reacting. Stressing out over the situation is only going to cause more problems.
Repeat after us, do not ignore it. Just because you tuck it away somewhere doesn’t mean that you never received it. The IRS knows where you live and work. There is nowhere to hide if they are looking for you. Pull up your bootstraps and tackle it head-on. Most of these correspondences are time-sensitive, and you don’t want to find a letter during your Spring cleaning from a previous year.
This brings us to our next point. Respond in a timely fashion. Don’t cause yourself unnecessary grief by waiting until the last minute to take action when one is required. It doesn’t matter whether you are a solopreneur, LLC, or a large corporation, the IRS will not tolerate being ignored.
Not every letter requires a response. If one is not requested, do not try to call or send an inquiry letter. Keep the letter in your filing system for your records just in case you need it in the future. Other letters may be to inform you of a dispute or perhaps to request additional documentation. Are you a non-profit that forgot to file for your tax-exempt status? Your letter could be requesting a 1023 form. Review all of the information provided and do not respond unless specifically instructed.
As a taxpayer, if you are ever unsure of whether or not you owe money to the IRS, you can always check online at irs.gov. This service is free and readily available for anyone to use. So there is no need to try to schedule a time to speak to an IRS agent. I think we can all appreciate that. It would be far more beneficial for you to schedule a complimentary 20-minute consultation with Bedrock Business Builders to see how we can be of service.
Lastly, avoid scams. The IRS will never initiate correspondence via social media or text messaging. No matter your entity formation, single-member LLC, Sole proprietorship, or Corporation, you are not going to get a chat request from an IRS agent to discuss your past-due taxes on Facebook. These are attempts to collect your personal information.
Let’s say you do owe money, and you are not confident enough to handle it yourself. Again, don’t panic! Joe Dichiara CPA of Bedrock Business Builders has the expertise needed to work with all types of business owners with any of their financial needs.