Do’s and don’ts for taxpayers who get a letter or notice from the IRS

The IRS mails letters or notices for a variety of reasons including if:

*They have a balance due.
*They are due a larger or smaller refund.
*The agency has a question about your tax return.
*They need to verify identity.
*The agency needs additional information.
*The agency made changes in tax return.

Here are some do’s and don’ts if you who receive one:

*Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. The notice or letter will explain the reason for the contact and gives instructions on what to do.

*Don’t panic. The IRS and its authorized private collection agencies generally contact taxpayers by mail. Most of the time, all the taxpayer needs to do is read the letter carefully and take the appropriate action.

*Do read the notice. If the IRS changed the tax return, the taxpayer should compare the information provided in the notice or letter with the information in their original return. In general, there is no need to contact the IRS if the taxpayer agrees with the notice.

*Do respond timely. If the notice or letter requires a response by a specific date, you should reply in a timely manner to:
minimize additional interest and penalty charges.
preserve their appeal rights if they don’t agree.

*Do pay amount due. Taxpayers should pay as much as they can, even if they can’t pay the full amount. People can pay online or apply for an Online Payment Agreement or Offer in Compromise. The agency offers several payment options.

*Do keep a copy of the notice or letter. It’s important to keep a copy of all notices or letters with other tax records. Taxpayers may need these documents later.
Do remember there is usually no need to call the IRS. If a taxpayer must contact the IRS by phone, they should use the number in the upper right-hand corner of the notice. The taxpayer should have a copy of their tax return and letter when calling. Typically, taxpayers only need to contact the agency if they don’t agree with the information, if the IRS request additional information, or if the taxpayer has a balance due. Taxpayers can also write to the agency at the address on the notice or letter. If taxpayers write, they should allow at least 30 days for a response.

*Do avoid scams. The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail. Taxpayers who are unsure if they owe money to the IRS can view their tax account information on

Fate of the Affordable Care Act?

Affordable Care Act. Here to stay?
During President Trump’s campaign, he promised to repeal the Obama administration’s Affordable Care Act and replace it with something bigger, better and cheaper.

There is no way to predict if a new health care bill will ever survive long enough to land on the President’s desk for signature.

There has been no law passed to eliminate the penalties regarding the individual mandate to carry health insurance.

Some of the more popular provisions that people would like to preserve in the new bill are: allowing dependents to remain covered on a parent’s plan until age 26, and prohibiting the denial of coverage based on pre-existing conditions.


IRS to hire Private Debt Collectors

The Internal Revenue Service plans to begin private collection of certain overdue federal tax debts in April 2017 and has selected four contractors to implement the new program.
The new program, authorized under a federal law enacted by Congress last December, enables these designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. Authorized under a federal law enacted by Congress in December 2015, Section 32102 of the Fixing America’s Surface Transportation Act (FAST Act) requires the IRS to use private collection agencies for the collection of outstanding inactive tax receivables.