Step Away From the Keyboard

You receive a notice from the IRS and you aren't happy. Maybe they want more information, or, worse, they've disallowed a deduction and now you have to fight them. Or, there was a form missing. How about the matching program shows up a W-2 that didn't make the return. No matter what the reason, you have to deal with the notice. The best way is to take the notice to your paid preparer and get their help. But if you didn't use a preparer to do the return in the first place or decide to handle the notice yourself, let me give you some advice - be polite. Now is not the time to drag out the rant about taxes and the IRS. Nor is it a good time to point fingers about who's mistake it was and your inconvenience. If you see your cover letter getting a little angry, save the letter and walk away for a while.

Why? Let me give you an example. About the time FASFAs are due for school financial aid, I start getting clients in who need their returns ASAP. Some leave it very late - the application is due today and they need their return info. And, because of my work load, it doesn't look like I can have the return done when they want it. Most clients understand and acknowledge they left it late and ask for it as soon as I can get to it. But at least one person a year thinks getting nasty is a better solution. They operate under the "squeaky wheel gets the oil" mantra. That may work on a face to face but not so well when the client is not there. So, I have 2 ASAP returns on my desk and I've found enough time to do one. But which one? I have to be honest and admit I'll help the nice client first. Why should I reward the other for their abuse? I'll get to their return was soon as I can. But, for me, the nice guy will be finished first.

What does this have to do with the IRS notice? While the initial notice was generally computer generated, your reply is being handled by a human. A live person who is dealing with a stack of replies to investigate. They will be as professional as they can. But being human, the tone of your letter will make an impact. Probably not in how the matter is resolved. Facts win out. But it can come to play in processing time and who gets picked to be worked and which file is left in the "to do" pile. Some issues can take a while to resolve.

So if you choose to respond to an IRS notice on your own, be nice. Save the rants and anger. You can mention what has been submitted before and when but don't rant about them losing paperwork. They didn't make the law they are simple trying to make sure that everyone follows the same rules. Being nice won't (and shouldn't) get you to the head of the line. But when it comes time for your file to be processed, don't make it easy for a human being to put it aside for another.

Comments

[Michael]

This is one of the central reasons that I've used personal tax software (Intuit) for some many years - it's thorough application that covers most (if not all) of the forms and filing standards. While not 100% reliable in all cases, it's been good to me. Couple that with the forward compatibility of previous data and warnings when large year-over-year changes are noticed and I have considerable faith in the Intuit brand (and have never needed to feign polite with an IRS auditor.)

I could see how it would be a bit like picking a fight with a police officer, you're essentially powerless, and grabbing at anger and frustration will only get your hole deeper.

And as they say - what's the first thing you do when you notice you're in a hole?

Stop digging.