Received an IRS Letter? Here’s How to Handle It Safely

With the tax deadline behind us, many Americans are feeling a sense of relief. But what happens if a letter from the IRS or the state tax commission shows up in the mail?

Paul Hood, with Hood CPAs, says receiving a letter doesn’t necessarily mean taxpayers have made a mistake.

Are IRS Letters Always Correct?

In fact, Hood said about half of the IRS letters sent out are incorrect, often due to discrepancies with reported withholdings or income.

"Our experience is that at least half of the letters that people get are incorrect," Hood said. "They're usually a matching situation, where you claim this amount in withholdings, and other people reported this amount, and they don't match, or maybe you forgot to report an income item. But oftentimes, the IRS or the Oklahoma Tax Commission are incorrect. Don't just assume that. Look into it."

Don't Rush To Pay IRS Payments; Get Financial Guidance

Hood advises taxpayers to verify the accuracy of any tax notice before taking action. He warns against rushing to pay penalties out of fear, noting that there are often options to contest or appeal.

He also reminds taxpayers that the IRS communicates primarily through letters, not emails or phone calls, cautioning people to be wary of potential scams.

"So many people just write a check to the IRS, and it's out of fear. Or to Oklahoma out of fear. A lot of people are getting letters nowadays on verifying their identity, and so that's a good thing to do. But the IRS will not email you. They will not call you. They will not text you. They'll send you a letter," said Hood.

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