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By proadAccountId-379994 19 Sep, 2016

Okay, a few days ago, we passed the first of tax extensions that were due -  for Partnerships and Corporations, so I wanted to briefly explain the extensions and what happens if you miss filing business returns by the (extended) due date. 


Despite the extra time, each year, I see people everywhere who still aren’t ready to file.  And to be fair, we end up filing those extensions right before summer vacations or school years ending and time just gets away from us.


Everything has an expiration date and for  Partnerships and Corporations, that was September 15.  Since you may be already starting to sweat a little, I won’t assume that you know what those are, so to start off, I'll provide a short synopsis of each.

By proadAccountId-379994 25 Aug, 2016

We’re way into August and okay just when you think you're done with taxes, you get a notice!

Well if this has happened to you, just know that you're not the first and you won't be the last. My best way to describe tax notices is the IRS asking questions about something you’ve said, or maybe forgotten to say. (Yes, they are actually listening).


1. MAKE SURE IT’S YOUR NOTICE AND IDENTIFY WHAT YEAR 

First thing you want to do is make sure it to your notice. This may seem a bit obvious, but in this age of paper mail being delivered to wrong addresses you'd be surprised. Notice the tax year that will tell you what year they're questioning. That helps you focus your energy on gathering the right folder to find any discrepancies. Unfortunately, it can take a few years for IRS to catch up with you with questions that you may have to provide documentation for, so be sure and keep your records at least 3 years, if not a few more just to be safe.

2. IDENTIFY THE AMOUNT YOU’RE BEING ASSESSED

After you've done the preliminaries now it's time to get into the meat of the notice, starting with the first section, which is pretty much a summary, that includes any actual tax owed, any payments toward that tax, next interest and penalties, if any, the total amount due and when it is due.
If it’s the first notice, there’s a good chance that IRS is just “proposing” additional tax. If so, it will will actually say that and the amount due in bold letters, and then include the summary tax, interest, new amount and due date.

3. FIND OUT WHAT IRS WANTS YOU TO DO NEXT AND BY WHAT DATE

Next section actually appears before they’ve provided the details. It’s still helpful to know this though in case you’re tempted to put the notice down and forget about it

There's typically a phone number to call, which will usually get your call answered more quickly. Always have your notice available because they will ask you this information to provide answers.

You may also see what to do if you agree with the change, what to do if you disagree with the change, and then what IRS will do if they don't hear from you. Scary language indeed!

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