You compiled all the necessary documents, tallied a year’s worth of income, searched for deductible expenses and filed your annual income tax return on time, only to receive a tax notice in the mail some time later from the Internal Revenue Service.
Do not worry; there is no need to panic. A tax notice does not automatically mean you are being audited. The IRS sends different letters for different reasons, and not all of them are about audits. For instance:
The agency also could be informing you about processing delays, or that an expected refund is going to be larger or smaller than you originally thought. In addition, it is definitely possible the IRS would contact you if they believe you owe more in taxes than what was stated on your return.
First, here is what not to do:
Even if you are being audited a prompt and complete first response is the best course of action. It will also help mitigate potential penalties and interest fees, if applicable.
Other actions to keep in mind, include:
Consider contacting an experienced attorney for more information, and assistance.