Have you received an initial contact letter from the Internal Revenue Service because IRS prepared your tax return?

You may want to consider calling us today to find me out your options about what to do and what the next steps are.

We are former IRS agents and managers who understand the complete processes and the methodologies of the Internal Revenue Service. this is a very easy system to understand.

Know one thing for sure, the Internal Revenue Service will follow-up on this information and eventually propose a tax assessment against you.

How to understand the process.

When the Internal Revenue Service sends out IRS letter 1862, they generally have information on their K2 computer system that they have received W-2, 1099s or third-party information  that required the taxpayer to file a tax return.

Third parties are required to report to Internal Revenue Service.

This is called the matching program. Basically, they match up the third-party information to tax returns. If there is no tax return filed it sends out a fly in IRS generates a notice.

Tax Information Center : IRS : Audits and Tax Notices  IRS Letter 1862 – Initial Contact Letter – Substitute for Return Program

What the Letter spells out:

The IRS has no record of receiving your tax return, so they have proposed taxes due based on information they received from others.

Why you received IRS Letter 1862

1. You did not file a tax return for the year shown on the notice.

2. The IRS received income information reported under your taxpayer identification number from others, such as employers, financial institutions, and other payers.

3. The IRS sent Letter 1862 to notify you that since you did not file a tax return as required, the IRS prepared one for you, using the information they have from others.

This notice will include a report showing all income items and the taxes, penalties, and interest proposed.

You have the right to file an original return which may reduce the amount of the proposed taxes.

Notice deadline: 30 days

If you miss the deadline:

You will lose your right file an appeal with the IRS Office of Appeals and the IRS will send you a Statutory Notice of Deficiency which gives you 90 days to file a petition with the U.S. Tax Court before the IRS records the tax liability to your tax account.

However, you can still file an original tax return after the tax liability is recorded.

Need help, call us today for a free initial tax consultation.