Any mail you get with an IRS return address will raise your blood pressure instantly. It’s not just you; it happens to us, too. It instantly means spending time on something you wish you didn’t have to (best case), and (worst case) you might owe money.
In a recent call with the IRS on behalf of a client, the uniquely helpful agent politely told me the minimum response time on most written communication was 18 weeks. OH MY! In case you didn’t do the math, that’s over four months. The challenge with that? Other than making you wait, almost all automated correspondence comes from different departments while you’re waiting for the department with your nicely worded letter to open it, read it, and do something about it.
What does that mean?
It means that in a lot of cases, a client can receive a balance due notice, more balance due notices, and seize and leave notices all within those four months even though we have already sent one, maybe two written correspondences asking them to address whatever issues are on the account, even in cases where the balance may not even be due (i.e., they screwed up, they don’t know it yet). This is highly stressful. You can’t ignore these notices either. You have to respond every time. Usually, the fastest response is a phone call, but make sure you have set aside a 3-4 hour window where you don’t need to do anything else.
So what can you do, and how can we help?
First, don’t assume that what it’s telling you is accurate just because you received a notice, especially if you don’t think that it is. As noted above, there are many instances where a notice is automatically generated from a computer and mailed out from one department when a payment, a letter, an explanation, documentation, etc., is already in the hands of another department that hasn’t processed it yet and updated your account.
The best thing to do is contact us and fill out a power of attorney form for us to call on your behalf. Practitioners have access to a special phone number that is designated for professionals, generally has shorter wait times, more experienced staff, and we can help get more clarification for you on exactly what the problem is. In some cases, we can assist by asking that a 30-day hold be placed on your account so that no future correspondence goes out until we help resolve the issue.
Any balance due also needs to have penalties and interest addressed. In some cases, we have been able to assist clients with lowering balances due and abating penalties. In those cases we are also able to have the interest lowered since the original interest was charged on a balance that is no longer due. In every instance, it’s important to research why you are receiving a notice and make sure you understand the underlying issues.
Because the IRS has become so increasingly difficult to communicate with, especially post-COVID with long processing times, many firms charge exuberant fees by the hour to help address this issues. Make sure when you engage a professional for tax preparation services you understand whether or not includes this type of support. It likely does not. Which means if you have an issue you’re either on your own, or facing a big bill. Even if no one made a mistake!
If IRS notices are keeping you up at night, please feel free to contact us at grow@cultivateconsulting.co
Christine Gervais
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
