Often, it can be quite difficult to match
the records they receive with the descriptions you (or perhaps we) placed on your
return. If the IRS cannot match the records, they will automatically assume the
return is incorrect and send you a notice of assessment which will include penalties and
Since the matching process performed by the IRS can be as long as 2 years
after the return is filed, the penalties and interest amounts can be quite large which
causes a considerable amount of taxpayer panic.
important that you relax and read the notice carefully to determine exactly what
information the IRS is requesting. What tax year are they examining? Just as
the IRS takes the position that the return is filed incorrectly until proven otherwise,
you must take the opposing position that the return is accurate until you have proven
otherwise to yourself. If our office prepared the return in question, please send us
a copy (or fax) of the notice.
Many times, we can immediately
set your mind at ease. Even in those instances where an error or
omission has been made, we can at least review the amounts the IRS has
assessed you and possibly even appeal the penalties. It may comfort
you somewhat to know that IRS assessments are calculated incorrectly at
least 20 to 25% of the time.