IRS notifications coming soon, but don't panic
Filed under: Tax
While the Internal Revenue Service sends letters to taxpayers year-round seeking more information on the tax returns they filed for the previous year, there's an uptick in IRS letters in June and July to people who waited until April 15 to file, said Brittney Saks, a partner in PricewaterhouseCoopers' Private Company Services, or PCS.
Taxes in the News
Gov. Arnold Schwarzengger tells reporters that he and lawmakers will try to quickly solve the state's $21.3 billion budget deficit without taxes, gimmicks or much borrowing, after appearing at a prayer breakfast in Sacramento, Calif., Thursday, May 21, 2009. (AP Photo/Rich Pedroncelli)
AP
Gov. Arnold Schwarzengger tells reporters that he and lawmakers will try to quickly solve the state's $21.3 billion deficit without taxes, gimmicks or much borrowing,after appearing at a prayer breakfast, in Sacramento, Calif., Thursday, May 21, 2009. (AP Photo/Rich Pedroncelli)
AP
SAN RAFAEL, CA - MAY 20: Six packs of beer are displayed on a shelf at liquor store May 20, 2009 in San Rafael, California. Federal lawmakers are considering an increase on tax paid for beer, wine, liquor and sugary sodas to help fund health insurance for an estimated 50 million uninsured Americans. Under the proposal, taxes on beer would be increased by 48 cents a six-pack. (Photo by Justin Sullivan/Getty Images)
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SAN RAFAEL, CA - MAY 20: Six and twelve packs of beer are displayed on a shelf at liquor store May 20, 2009 in San Rafael, California. Federal lawmakers are considering an increase on tax paid for beer, wine, liquor and sugary sodas to help fund health insurance for an estimated 50 million uninsured Americans. Under the proposal, taxes on beer would be increased by 48 cents a six-pack. (Photo by Justin Sullivan/Getty Images)
Getty Images
SAN FRANCISCO - MAY 20: Six packs and single bottles of beer are displayed on a shelf at the City Beer Store May 20, 2009 in San Francisco, California. Federal lawmakers are considering an increase on tax paid for beer, wine, liquor and sugary sodas to help fund health insurance for an estimated 50 million uninsured Americans. Under the proposal, taxes on beer would be increased by 48 cents a six-pack. (Photo by Justin Sullivan/Getty Images)
Getty Images
SAN FRANCISCO - MAY 20: A customer shops for beer at the City Beer Store May 20, 2009 in San Francisco, California. Federal lawmakers are considering an increase on tax paid for beer, wine, liquor and sugary sodas to help fund health insurance for an estimated 50 million uninsured Americans. Under the proposal, taxes on beer would be increased by 48 cents a six-pack. (Photo by Justin Sullivan/Getty Images)
Getty Images
SAN FRANCISCO - MAY 20: Six packs and single bottles of beer are displayed on a shelf at the City Beer Store May 20, 2009 in San Francisco, California. Federal lawmakers are considering an increase on tax paid for beer, wine, liquor and sugary sodas to help fund health insurance for an estimated 50 million uninsured Americans. Under the proposal, taxes on beer would be increased by 48 cents a six-pack. (Photo by Justin Sullivan/Getty Images)
Getty Images
SAN FRANCISCO - MAY 20: Six packs and single bottles of beer are displayed on a shelf at the City Beer Store May 20, 2009 in San Francisco, California. Federal lawmakers are considering an increase on tax paid for beer, wine, liquor and sugary sodas to help fund health insurance for an estimated 50 million uninsured Americans. Under the proposal, taxes on beer would be increased by 48 cents a six-pack. (Photo by Justin Sullivan/Getty Images)
Getty Images
SAN FRANCISCO - MAY 19: Cigarette butts are seen in the cracks of the sidewalk May 19, 2009 in San Francisco, California. San Francisco mayor Gavin Newsom is proposing a 33 cent tax on cigarettes purchased in San Francisco to offset the more than $44 million a year that the city spends on cleaning up discarded cigarette butts. (Photo by Justin Sullivan/Getty Images)
Getty Images
SAN FRANCISCO - MAY 19: A smoker takes a puff off of a cigarette as he smokes in a park May 19, 2009 in San Francisco, California. San Francisco mayor Gavin Newsom is proposing a 33 cent tax on cigarettes purchased in San Francisco to offset the more than $44 million a year that the city spends on cleaning up discarded cigarette butts. (Photo by Justin Sullivan/Getty Images)
Getty Images
"I think people just get nervous when they see the IRS letterhead," Saks said in a telephone interview from her Chicago office.Because the tax returns are first processed by computers for inconsistencies, the form letters usually ask for information that can be easily resolved, such as a matching issue with a Social Security number or no signature on the return.
"The first thing is, don't panic," Saks said.
"I think the important thing is, don't ignore it," she said. "Don't throw it in the garbage, because you'll just get more."
PCS deals mostly with private businesses and their wealthy owners, so while it's doubtful you'll use its services, Saks' advice holds weight for anyone getting a letter from the IRS. If you filed the return yourself, call the IRS for help, and if you hired an accountant, ask them for assistance, Saks suggested.
If you get a letter and a refund or stimulus check at the same time, cash the check if the amount matches your records of how much refund you expected from the government, she said. But don't cash it if it's too high, because the IRS will eventually catch its error and charge interest if the check is cashed.
"Whenever you get a refund check, before you cash it, you want to make sure that the amount matches your return," Saks said.
If the refund check is for less than you expected, then you should also be getting an IRS letter explaining the change. If you agree, do nothing more than cash the check. If you disagree, you can still cash the check, but you'll have to submit documentation of why you disagree with the smaller number.
Reader Comments (Page 1 of 3)
5-24-2009 @ 6:22AM
Oceanwillie said...
The advice about not cashing refund checks that don't match the return's calculation is bogus. In my own experience, more often than not the IRS's calculation is different than the one my CPA got. Of course the IRS trumps everyone else, including our Heavenly Father.
Cash the check unless the difference is unreasonable. If your experience matches mine, you won't hear from the IRS again.
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5-24-2009 @ 11:56AM
usnewsreporter said...
I disagree with most bad press on the IRS. The IRS workers try very hard to do their job just like any government or state worker. The resentment you feel is because many people almost all people do not feel that they should have to pay taxes. The people that are disgruntled and do pay their taxes should work more towards turning in anyone they know that gets paid under the table or does not file their taxes. The IRS uses our tax money to support many different governmental agencies which benefit the people of the United States of America. Please consider that paying your taxes is like being in a union. You have to contribute to the union in order to get the benefits that they give you in that union. It is simply broken down into different areas that go to support many different areas of our government where many US citizens work. If you want more information and a detailed list of the accounting breakdown go to http://www.gpoaccess.gov/usbudget/fy08/hist.html and read up on what your taxes support. Thank you very much.
5-24-2009 @ 7:10AM
MyKisa said...
...the strong arm of the fed will destroy ya...unless you are a presidential appointee
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5-24-2009 @ 7:30AM
Nothappy said...
So much for stimulating the economy! While things seem to get better, gas prices go up and you get a letter from the IRS stating there that you owe more. This is a scam to collect back the money from the "stimulus" that the government has given to everybody else but to us. How about doing something with the price of gas like taxing the oil companies and demanding they don't screw us for it. Remember when we almost came to pay in this country 5 dollars a gallon? That is what tipped the economy for the worst, and that is what will prevent us from getting out of this hole. Am I the only one to see this?
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5-24-2009 @ 8:11AM
Gunwriter said...
I see...except it's not a scam; it's a conspiracy.
5-24-2009 @ 9:08AM
Tileguy said...
The answer is not to tax oil companies,unless you want to pay more for gas. You see the oil companies will just raise their price to cover the tax. The answer is SHRINK THE SIZE OF GOVERNMENT and all taxes could then be lowered. The Government is the problem, not the solution. The Government has grown like a cancer and has outgrown this country.
5-24-2009 @ 7:58AM
barb said...
i resent being called a slacker. my taxes still arent filed because i cant afford to go pick them up.yes, i do owe, which i pay them every month but i am in construction and work is not steady.. and no, because i owe i do not get a stimulus.... so where is my bailout mr prez???
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5-24-2009 @ 8:05AM
christine said...
DOES ANYONE KNOW ARE WE GETTING ANOTHER STIMULUS CHECK IN JUNE I HEARD SO MANY RUMORS!!
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5-24-2009 @ 8:10AM
Sherri said...
I believe only people who are receiving Social Security will be getting a check for $250.
5-24-2009 @ 10:07AM
Rose said...
If you are receiving social security, you'll have a check for $250 sometime in the month of June 09. If you are employed, the amount of taxes taken out will be less by about $10-15 per paycheck and at the end of the year, on April 15, 2010 you will supposedly see a reduced federal tax of $400 for singles and $800 for marrieds. I am an accountant and I'm looking forward to the mess that will be created for this upcoming tax season. I'm still listening and watching to see what other little bits of stimulus will actually trickle down to the middle working class.
5-24-2009 @ 8:19AM
JimEye said...
To: Nothappy, asking: "Am I the only one to see this?" ********************* answer: Probably. How does it feel to be a minority now, Nothappy?
Many of our economic woes are not due to mere previous gasoline/fuel prices having surged to near $5/gallon, but the fuel price surge certainly aided and abedded in our seeing that some other solution (other than "Drill, Baby! DRILL!) was in desperate need.
With Fed gas tax having been stagnant (at 18.2¢ per gal.) since the early 90's it might behoove the Federalis to increase said tax to ... oh ... say 25¢ or even 50¢ per gallon. Either that, or set a "floor" on the price of a barrel of oil at $60 or more - for U.S. consumption. As the price of a barrel of oil raises - which it will inevitably do - keep the floor at 10% above the current market price; then plow those monies back into U.S. infrastructure, which is crumbling before our very eyes due to decades of neglect and lack of funding.
Without support and leadership for such a program (of both gas taxes and continued infrastructure improvement) the U.S. will stagnate, fail to provide the world with further leadership so desperately needed for environmental progress, and we will not return to the 'most prosperous nation on earth' status we once enjoyed.
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5-24-2009 @ 9:24AM
Just a Guy said...
JimEye.... Please, stop with the intellignet, and well thought out comments on here.
The losers will go nuts trying to damm you for any thing written that actually makes sense, and, stays on topic.
It is like trying to teach a pig to sing, all you do is annoy the pig, and waste your time.
5-24-2009 @ 8:18AM
nick said...
Would love to see them go over Oprah's and Soros tax returns for the last 10 years and see who they gave walk around money to. You can bet your sweet ass that alot when to Obama and Rahm.
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5-24-2009 @ 9:43AM
readers opinion said...
I agree with just a guy, but you have to realize other people have, different opinions on the same subject, so, Jimeye, keep anoying the pig by trying to teach it how to sing and ,just a guy, you rock. God bless america, this country will get ahead again. Just have faith.
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5-24-2009 @ 9:45AM
jeff said...
fuck the irs i been geting a auit done for 6 mos tryed to prove everything they whant. the still say i owe them 2900. i say it agian fuck the Irs
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5-24-2009 @ 10:16AM
MN said...
Be sure to blame the IRS because you didn't pay your fair share of taxes. Fuck them? Fuck you.
I don't want to pay your share.
5-24-2009 @ 10:53AM
Al Tiedmann said...
Perhaps someone should audit your grammer too!!!
5-24-2009 @ 10:07AM
Susan said...
I owed, I paid, and I don't want to hear from them.
http://Susan-livinghealthywithchallenges.blogspot.com
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5-24-2009 @ 10:18AM
StarDust888S said...
All I see when I read these comments about our government robbing us, is complaining. Don't get me wrong; I'm an able complainer, too, when the subject comes up. However, what I'm wondering, is the real question: Why have we gone soft and are not doing something about getting back to our roots upon which this country was built? Anybody? Anybody?
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5-24-2009 @ 10:19AM
Laurie said...
The entire meat of the matter is that far too much of our tax dollars are being spent supporting a government that accomplishes less and less with each passing year. If we weren't spending so damn much on their salaries, benefits, and perks, there would be the money to fix roads, fund schools, boost the economy, pay down the national debt, etc etc etc. Until and unless we downsize government, this is going to keep getting worse. The only thing the senate and congress manage to agree on is their own salary increases. How DARE they even entertain that in the situation the rest of this country is in? I say they all go back to getting paid per diem, which is how it was in the beginning. Considering they only work about 3 months out of the year, I think it would be more than fair. Just my opinion.
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