How to deal with a tax notice

In the 1941 film “The Wolf Man,” a nice guy named Lawrence Talbott (Lon Chaney Jr.) heard the chilling words that even a good man who says his prayers can become a werewolf!

Well, even honest taxpayers who file their returns on time may get the dreaded “Tax Notice” from the Internal Revenue Service telling them that they slipped up somewhere. Last week, I cited some reasons why those tax notices go out. This week, I’ll tell you how to handle them:

1. Check a copy of your return to see if you agree with the changes indicated on the tax notice. If so, usually no reply is needed. (For example, you may have made a mistake in your arithmetic or put an entry on the wrong line, all of which the IRS corrected.) If you owe money, the notice will instruct you where to send your payment. And do so ASAP.

2. If you disagree with the tax notice findings, call the IRS immediately. The phone number is on the form. It’s a good idea to follow up with a letter, sent to the address that is also on the form. Include photocopies of supporting material, such as canceled checks and receipts, as well a photocopy of the tax return in question.

3. You may get a second notice responding to your questions or asking for more information. Provide the requested additional data, or follow the guide on how to proceed further.

4. If you and the IRS still disagree, you might contact the Tax Advocate Service. The toll-free number is 1-877-777-4778 (for TTY/TTD 1-800-829-4059). Be prepared to send (or bring, if it’s a personal meeting) copies of all notices, correspondence, tax returns and supporting documents connected to the disputed return.

Good luck.