Got an IRS notice, now what?

Hearing from the IRS is not uncommon, especially because of the number of filing mistakes that are routinely made. If you receive a computerized communication, you are best off answering it in a timely fashion providing the requested information or call directly to the telephone number provided.

If you are notified of an audit, living overseas, your options are limited. You can either attempt to handle the audit yourself by mailing all requested information to the revenue agent, or hiring a US accountant to handle it for you.

Whatever the case, you will be expected to provide all the documentation that was used to prepare the return…income, deductions, credits, payments. Before mailing anything in to the IRS, be sure to send only copies and keep all originals for yourself, as more often than not, information sent through the mail gets lost.

Don’t be surprised if the audit process takes several months to complete, especially if you are trying to handle it through the mail. Once the auditor makes the final determination, you will receive a letter that details all changes and calculates the final results. If tax is owed, you will be given the opportunity to pay it all at once, or set up a payment plan that works with your financial budget.