Mistake #4: When dealing with the IRS /Minnesota Dept of Revenue

St. Louis Park MN

01 May, 2021

9:19 PM

Description

We have been highlighting common mistakes that taxpayers do when dealing with the IRS and Minnesota Department of Revenue. The number 1, number 2 and number 3 mistakes are “Not Filing a Tax Return” , “Not Appealing!” and Filing an Offer in Compromise(OIC) without doing the proper financial analysis. “Not Responding to IRS/State Notices”. I frequently represent clients in IRS examination and Collection cases in the Twin Cities, Minnesota. It is understandable that notices from the IRS / Minnesota Department of Revenue are difficult to understand. If you receive a letter or notice from the IRS, do not panic, open, and read it. After reading, you still have questions you should contact your tax professional immediately – do not wait! it is critical for taxpayers to respond to IRS notices timely. With the IRS’s Automated Under-Reporter System and its Automated Substitute for Return System, it is imperative that taxpayers respond to the IRS quickly when they receive a notice from the IRS. Failure to respond to an IRS Notice can lead to negative outcomes. The negative outcomes includes wage garnishment, bank levy, Property liens, failure to file and failure to pay penalties with interest, missing opportunities to correct an error. and much more negative outcomes. Also, make sure you stay on top of your tax professional to make sure they respond (sadly we see many cases where the tax preparer also did not understand the IRS notice and couldn’t be bothered to properly respond to the IRS). Keep track of any response due dates or call the IRS yourself and ask what the issue is, or/and for more time. But make sure the IRS obtains a response! If you have any questions regarding tax issues in Twin Cities, Minnesota ,do not hesitate to contact me at (612)516 5878 or by email at [email protected]. Joe Alabi EA MAcct (Taxation) FishCoin Tax Solutions 4124 Quebec Ave North Suite 307 New Hope, Minnesota MN 55427 (612) 516 5878