I received a notice in the mail from the IRS and/or my state taxing authority. What should I do?
The first thing to do is get a copy of your notice to our office. You may fax it in, scan it and email it to our general mailbox admin@defilippisfinancial.com or drop it off. If you have taken advantage of our Prepaid Audit Service, you will not be charged for our services acting on your behalf in response to the notice(s). If you did not purchase our Prepaid Audit Service for the tax year in question, you will be charged at our normal hourly rate.
The Treasury Inspector General for Tax Administration (TIGTA) conducted a study of IRS’ AUR system (the system that triggers notices to taxpayers proposing additional taxes based on the IRS matching program). They found that 5.1% of the samples in the study were sent incorrect notices. The errors resulted in $18,968 of over assessed tax and $1,146 of under assessed tax. Based on this information, TIGTA estimated 243,345 taxpayers would be over assessed and 97,430 would be under assessed over the next 5-year period. In our experience, the incidence of incorrect IRS notices is higher than that demonstrated in the TIGTA study. Unfortunately, most taxpayers pay-up for fear of further trouble or because "It's from the IRS, it must be correct!” Contact us before paying any additional tax due to an IRS notice.