- 1). Read the IRS notice several times. The notice will be difficult to fully understand if you read it only once. Make notes on what the IRS is asking for, including the tax year the notice refers to, the specific issue in dispute and the payment requested to satisfy the liability.
- 2). Review and compare the items in question in the IRS notice with the tax return you filed for that year. Call your CPA to discuss the notice you received and set up a meeting to review the issue. Prior to meeting with your CPA, complete and mail/fax an IRS power of attorney, Form 2848, to your CPA. This will ensure that the CPA will have authority to act and speak on your behalf to the IRS regarding the issue at hand.
- 3). Consider calling the IRS agent listed on your notice prior to meeting with your CPA. Contact information will be listed in the top right-hand corner of the notice. While speaking with the agent, write down the date and time you called, whom you spoke to and the details of the conversation. Every IRS agent has an agent number that he will provide when identifying himself. Do not be afraid to ask the agent to repeat this number if you don't hear it the first time. This information is as important as the agent's name in identifying who gave you advice.
- 4). When meeting with your CPA, bring the IRS notice, the notes you made regarding the issue in dispute and any notes from conversations you had with an agent at the IRS. To assist the CPA, also bring any documentation that you think will clarify the issue the IRS raised. For example, say the IRS notice states that funds were withdrawn from your 401K and therefore should be counted as income; however, you simply rolled over the 401K into another 401K in a tax-free transaction. In this case, you should be sure to bring the forms that show the rollover was tax-free to the meeting with your CPA.
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