An IRS demand letter is a letter sent by the Internal Revenue Service (IRS) to an individual or business that owes unpaid taxes. The letter is a formal notification of the outstanding tax debt and a demand for payment.
The IRS may send a demand letter after multiple attempts to contact the taxpayer and collect the outstanding taxes have been unsuccessful. The letter typically outlines the amount owed, the due date, and any penalties or interest that may have accrued.
If you dont agree with IRS demand letter received, you have several options:
1. Request a meeting with the IRS:
You can contact the IRS and request a meeting to discuss the matter. During the meeting, you can provide your side of the story and provide any supporting documentation.
2. File an appeal:
You have the right to appeal the IRS’s decision. The appeal process allows you to have an independent review of your case by an impartial officer.
3. Seek help from a tax professional:
You may want to consult with a tax professional, such as a tax attorney or enrolled agent, who can assist you in navigating the IRS’s process and represent you in communications with the agency.
4. Make a payment arrangement:
If you agree that you owe taxes, but disagree with the amount or the way the IRS calculated it, you may want to consider setting up a payment arrangement while you work to resolve the issue.
If you receive an IRS demand letter, it is important to take action as soon as possible. Ignoring the letter could lead to further collection efforts, such as a tax lien or levy on your assets. Contacting the IRS and working out a payment plan or settlement offer may be an option to resolve the outstanding tax debt.
