That Unsettling Envelope: Why You Can’t Afford to Ignore an IRS or NY State Notice

The mail arrives. Bills, junk mail, maybe a card. And then, there it is: an official-looking envelope from the IRS or New York State. Instantly, your stomach does a flip. It’s a feeling I know many of my clients experience, and it’s a moment when the worst thing you can do is… nothing.

Lately, I’ve had several clients reach out to me with these very notices in hand. And let me tell you, the first thing we do isn’t panic. It’s to take action, swiftly and strategically.

Don’t Let It Linger: The Dangers of Ignoring Tax Notices

It’s tempting to shove that notice into a “deal with it later” pile, or even worse, a “hope it goes away” pile. But when it comes to tax authorities, that’s a gamble you simply can’t afford. Here’s why:

• Penalties Accumulate, Fast: Those initial amounts on the notice? They’re often just the beginning. Penalties for non-response, late payment, or non-compliance can compound rapidly, turning a manageable issue into a significant financial burden.
• Deadlines Are Non-Negotiable: Tax notices almost always come with strict deadlines. Missing these can trigger further, more aggressive actions from the IRS or New York State, making the resolution process much more complex and costly.
• Unnecessary Stress Takes Its Toll: Let’s be honest, tax notices are inherently stressful. But ignoring them multiplies that stress exponentially. The constant worry, the “what ifs,” and the looming threat of escalating issues can genuinely impact your peace of mind. Addressing it head-on, with professional help, significantly reduces this anxiety.

Your CPA: Your First Line of Defence

When you receive a tax notice, your CPA should be your immediate point of contact. This isn’t just about crunching numbers; it’s about navigating complex regulations and advocating on your behalf.

My process when a client brings me a notice is straightforward and effective:

1. Information Gathering: We go through the notice together, ensuring we understand every detail, requirement, and deadline.
2. Professional Response: I then prepare and submit the necessary responses and documentation to the tax authorities on your behalf, ensuring everything is accurate, timely, and compliant. This takes the burden directly off your shoulders.

Is Your CPA Not Stepping Up?

Here’s a crucial point: your CPA should be handling these notices for you. It’s a fundamental part of the service they provide to ensure your tax compliance and protect your financial interests. If your current CPA isn’t offering this level of support, or if you feel you’re left to fend for yourself when a notice arrives, it might be time to reassess.

These notices demand immediate attention and a professional response. Don’t let fear or confusion lead you to ignore them. Your financial well-being and peace of mind are too important. Received a notice from the IRS or New York State and feel overwhelmed? Don’t wait! Reach out to us, and let’s get it resolved efficiently and effectively.