Disagree with IRS? Seven bullet points to know first

If you received a written notice from IRS this year, you are among the largest number of taxpayers ever to be among this group. This post lists seven basic bullet points to consider first:

  1. IRS communicates through letters delivered via U.S. mail service. Communications via text message, phone, overnight delivery, email or fax are highly likely to be a form of fraud.
  2. IRS sends form letters. The letter form is sent to thousands of taxpayers, not custom written specifically for you. As tax professionals, we’ve seen and are familiar with all the letters before even if this is new to you.
  3. If you elect to communicate with IRS directly first and then later decide that you want professional representation, realize two things: a) your representation fee will be higher, and b) the end results may be less favorable. For these reasons, you should talk to an adviser first, before deciding to contact IRS.
  4. IRS does make factual errors; this year more than ever before.
  5. IRS more often errs in matters of opinion taken.
  6. Your choice to oppose an IRS position in a letter is your unrestricted right and does not require any supportable reason.
  7. Our professional choice to advise you on opposing IRS is based on a mathematical formula that has little to do with your personal choice. We must consider the dollar amount in dispute, the probability of a favorable outcome, trends in court cases, other IRS announcements and news sources, and the risk of making the situation worse (expanding he audit) in comparison to the cost of representing you in an IRS dispute.

I am available for initial consultation to discuss any IRS dispute situation without cost or obligation.