Episode #74: Letter From The IRS

Today’s Smart Money Question:

Learn what to do when you receive an ominous letter from the IRS. If the IRS is asking you for additional money, consider your options.

(Click the featured times below to jump forward in the episode)

Here Are Just A Handful Of Things You’ll Learn:

00:33 – A Bit Of Context.

Sometimes, after you’ve filed your taxes for a previous year, you’ll get a letter from the IRS. It will say something to the effect of “We’ve received your forms, we don’t agree with your submission, and you owe us more money.” If you receive such a letter, please don’t jump straight to the conclusion of cutting the IRS a check. Especially in the age of filing your own taxes, you’ve got to be wary of foregone conclusions about your tax filing. Don’t assume the IRS automatically has it all together. Of course, we’re not telling you to skirt your taxes either. We just want you to thoroughly investigate and consider your options when it comes to approaching such seemingly mysterious letters.

2:58 – Hire A Tax Professional.

We highly recommend you hire a tax professional when filing your taxes. Your tax pro will really work to fight for you and thoroughly investigate your situation as issues arise. They know the ins and outs of tax filing and can ensure you don’t overpay in taxes. Ideally, your tax professional should be working with you to plan in advance. Use tax strategies that will protect your wealth.

4:03 – Why Does The IRS Send These Letters?

These letters function as a sort of audit. They’re basically looking for you as the taxpayer to provide the correct forms and prove you’ve been correctly documenting your finances.
It’s easy to think you should just pay these fees as the IRS is a seemingly powerful agency. Instead, consider these notifications to be a simple check-up on your tax filing. Take them at face value, and don’t jump to conclusions. Use these letters to prove you’ve indeed followed the correct procedures and don’t owe anything you haven’t already paid.

Other Smart Money Points:

6:18 – Review These Letters With Your Tax Professional.
7:36 – Conduct A Thorough Investigation.
10:36 – More Confusion To Come?

The Answer:

The IRS wants your money. Don't overpay. Review any letters from the IRS with your tax professional before cutting a check. - Smart Money Questions

Tweet This

Do You Have A Smart Money Question?

Ask Matt your smart money question. Click here.

GOT A SMART MONEY QUESTION?

Do you have a question that we haven’t covered yet? Just leave me a message and your question just might be on my next podcast!

Why Ask A Question?

Although everyone’s situation is different, your question might help hundreds of other people who are in the same boat. Don’t be afraid of the answers, be afraid of not asking the question!

What Do You Get?

The clearest answer I can give on how to address your retirement question and links to resources that may help you.

Don't Have A Microphone?

Just fill out the form below to ask your question!

SCHEDULE A TIME TO MEET

It’s fast and easy to make an appointment with Matt. You can start with a 30-minute conference call or meet in-person at the office in Malvern, PA.

Book Appointment

Contact

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Smart Money Questions and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. ©2018 All written content on this site is for information purposes only. Opinions expressed herein are solely those of Old Security Group and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee based financial planning and investment advisory services are offered by Old Security Group a Registered Investment Advisor in the State of Pennsylvania. Insurance products and services are offered through Old Security Trust Corp. Old Security Group and Old Security Trust Corp. are affiliated companies. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any State other than the States of Pennsylvania, Delaware and Maryland or where otherwise legally permitted.