Should You Ignore an IRS Notice if You Believe it’s a Mistake?

If you’ve received an IRS notice and believe it’s a mistake, you might be tempted to ignore it, especially if you’re confident the issue will resolve itself. However, ignoring the IRS notice is not a solution—and it can lead to more problems down the road. Let’s explore why ignoring an IRS notice is never a good idea, what steps you should take if you think it’s an error, and how to handle the situation effectively.

What happens if you ignore an IRS notice?

Ignoring an IRS notice won’t make it go away. In fact, the IRS takes its notices seriously and expects taxpayers to respond in a timely manner. Failing to address the issue could lead to penalties, interest, or even enforcement actions like wage garnishments or property liens. Simply put, not responding to an IRS notice is like ignoring a problem that will only grow worse with time.

Understand your IRS Notice

Before taking any action, carefully read through the notice you’ve received. The IRS typically sends notices for a variety of reasons: missing or incorrect information on your tax return, an outstanding balance, or discrepancies between the information they have and what you’ve filed. It’s crucial to understand the cause of the notice before deciding what to do next.

In many cases, the IRS may have made an error, but it’s equally possible that there is a valid reason behind the notice. The key here is understanding what’s being questioned. If after reviewing it you still believe the IRS is in error, don’t ignore it. Instead, gather your supporting documents to prove your case.

What to do if you think the IRS made a mistake?

Here’s what you should do if you believe the IRS has made an error:

1. Gather Documentation
   Collect all relevant paperwork that supports your claim. This could include tax returns, receipts, bank statements, or any other records that back up your position. The more evidence you have, the stronger your case will be.
2. Contact the IRS
   The IRS notice will typically include a contact number for you to call. If you’re unsure about the error, reach out to the IRS directly. Be prepared to explain why you believe the notice is incorrect, and have your documents on hand to support your case.
3. Respond in Writing
   If the IRS requests more information, you’ll need to respond in writing by the deadline indicated in the notice. Clearly explain why you believe the notice is a mistake, and provide the necessary documentation. Responding quickly and efficiently can help you avoid additional penalties or interest.
4. Appeal If Necessary
   If the IRS still disagrees with your explanation, you may need to file an appeal. The notice will include instructions on how to do this, and it’s important to follow those steps to challenge the IRS’s decision.

Why you should never ignore an IRS Notice

Ignoring an IRS notice doesn’t make the issue disappear. The IRS has the power to enforce tax collection, and ignoring their communications can lead to serious consequences. These consequences include:

1. Penalties and Interest
   Failing to respond to an IRS notice can result in penalties and interest on your tax debt, increasing the amount you owe over time.
2. Liens and Levies
   The IRS can place a lien on your property or seize assets to cover the debt if they believe you owe taxes and haven’t taken action to resolve it.
3. Wage Garnishment
   The IRS can garnish your wages, meaning they will take a portion of your income directly to pay off your tax debt.

Final Thoughts

Even if you’re convinced that the IRS made a mistake, ignoring the notice is never the best course of action. Responding promptly, gathering supporting documentation, and communicating clearly with the IRS is key to resolving the issue and preventing further complications. If you need help navigating the process, don’t hesitate to reach out to us at the Law Office of Steven N. Klitzner to ensure you’re taking the right steps.