Have you received IRS notices several times? While one notice might not be cause for worry, several notices do give you reasons to be concerned. If you’ve received multiple notices, it’s likely because your information or taxes are incorrect or your payments are late. You have to stay on top of your taxes. It’s essential that your taxes are paid correctly and on time. Keep reading to learn more about this and what you can do about them.
There are a few reasons why you would receive these notices. Sometimes, the IRS has a question, needs to verify your identity, or needs more time to process your return. However, if you’re receiving many of these notices, it’s most likely that there’s a problem. Maybe you have a balance due. Maybe there are issues with your tax return or documents. You need to find out the cause to fix the problem. Is your current bookkeeper or accountant doing a good job? Is your cash flow poor? Don’t be afraid to ask yourself the hard questions until you find the answer.
Frequent IRS notices might be a sign that there’s a problem with your bookkeeping. Payroll taxes must be paid by a certain day. Even a glitch in Quickbooks that leads to late payment will result in an IRS notice. However, if your accountant isn’t paying your business’s payroll taxes on time, that’s a problem. Instead, maybe you’re tired of these notices about your tax returns. If your tax returns are incorrect year after year, it’s time to make a change. When your finances aren’t in good order, your tax returns probably won’t be correct. Make sure your books are ready from the beginning with an expert CPA.
Respond. Even if you’re tired of these, make sure you respond. This is one of the most important things. Replying on time means less penalty or interest charges. If you don’t agree with the notice but respond on time, you maintain your rights to appeal. A response isn’t necessarily a payment. However, you should make a payment as soon as you can. If you can’t pay the full amount, pay what you can. Even the IRS offers payment plans.
Keep a copy of the notice. You will want to save this copy for your taxes. Once the issue with the IRS is dealt with, you need to look for the cause. It could be a problem with bookkeeping or with cash flow. If you’re behind on your books, you don’t know where the business is financially, so you won’t be able to make good decisions. At the end of the day, Rodahl & Company is here to help. Give us a call. We’ll make bookkeeping a breeze.
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When it comes to CPA Fort Collins services, Rodahl & Company are your trusted CPAs and financial advisors. Give us a call today to learn more.
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