Law Offices of Connie Yi, PC - estate planning
Tell Us About Your Case

For the safety of our community, clients and staff, we have suspended all in-person meeting effective March 17, 2020. All consultation meetings will be via Phone or Zoom Video Conferencing. Please contact us at 925-484-0888 or email us directly at [email protected] to schedule the consultation.

Bay Area Estate And Tax Planning Law Firm
Estate Planning
Trust Administration and probate

Don’t wait to respond to an IRS notice

| Jun 19, 2015 | Uncategorized |

It the thing nobody wants to get in the mail: a letter from the IRS informing the recipient that there is a problem with a previous income tax return. Whether the letter is announcing an audit, or asking for more information to explain an apparent discrepancy, it is something likely to get the heart pounding and the hands sweating.

That is was the initial reaction one newspaper columnist and her husband experienced after receiving a CP2000 Notice from the IRS a few months ago. But they did not give into a temptation many people might have, which is to ignore the letter and hope the matter will blow over.

Instead, they took action to figure out what had happened. The IRS claimed the couple had underreported their income by $25,000 in 2013, and owed $12,255 in back taxes, interest and penalties. The writer discovered that a company for which she had done freelance work that year had mixed up her 1099 with someone else’s.

She sent documentation to the IRS explaining the error. While the agency processed the evidence, it continued to send the couple notices telling them that interest was still accruing on the alleged debt. Finally, the couple received a CP2005 Notice informing them that the IRS was satisfied that they owed no back taxes.

Many tax controversies can be resolved this simply. Other times, the case is complex, and requires the assistance of a tax attorney to fend off or appeal an audit. Either way, taking action as soon as you hear from the IRS improves your chances of a fair result.


FindLaw Network

Recent Blog Post

Is estate planning necessary for young people?

Misconceptions exist about the relationship between age and estate planning. Yes, older people may prioritize estate planning for reasons related to advancing age and health concerns. That does not mean only older California residents benefit from the process. Young...

What are the responsibilities of a fiduciary?

Residents of California may want to learn more about the role of the fiduciary and their responsibilities. Because fiduciary duty may be a requirement among certain professions, clients and professionals should know more about what this is. The meaning of fiduciary...

5 factors to consider when choosing a guardian

For parents, one of the biggest reasons they decide to create an estate plan is to ensure their child will be cared for no matter what. It isn’t easy to think about a tragedy where a child may lose both their parents before they turn 18, but parents have to plan for...

View More Blog Posts