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Supporting Your Faith with Fiscal Accountability

Testimonials

I am pleased to recommend Mark and his firm. He has helped us to become a better organization and better people as well.

Rev. Louis R. Lothman, Th.D., Director, Pastoral Counseling Services, Presbyterian Minister, Presbyterian Church (U.S.A.)

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Call: 904-398-4747

Help! There’s a letter from the IRS in my mail today. What should I do?

Many non-profit organizations receiving a letter from the IRS may feel the world as they know it just came to an end…but we can assure you that scenario isn’t likely. However, don’t ignore these notices. Most groups don’t receive IRS letters very often, but here’s a checklist for you to follow if you do:

  1. Don’t panic. These notices are often easily resolved.
  2. There’s no assumption the IRS is correct. If the IRS is wrong, it can be easily corrected.
  3. Read the notice carefully and completely. Often letter recipients only send us the first page, but we really need to see the entire notice to effectively evaluate where the problem lies.
  4. Note how, where and when to respond. These letters are often computer generated, yet the response must be read by a human being. Therefore, it’s important the IRS receives a response within its timeline to maximize the strength of your defense.
  5. If the notice is in the form of a bill and you agree with it, the sooner you pay any tax due, the sooner the penalties and interest accrual stop.
  6. If you don’t agree, the response needs to:
    1. provide a clear explanation of where the IRS is wrong, and
    2. include appropriate documents to support your position strongly.
  7. If you partially agree with the IRS’ position, but not entirely, an amended return may be the best way to respond. Again, it’s important to document why your amendment has the right answer.
  8. Generally, calling the telephone number on the notice is a frustrating experience as the wait time is long and explaining your situation verbally can be difficult. Obviously if you’re approaching a response deadline or you’re dealing with a second or third notice where enforcement action is pending, the phone may be the only practical method for responding. We also don’t recommend going to an IRS Service Center, as they’re usually only equipped to answer basic tax preparation questions. The correspondence you received came from a large Service Center in another state, and they’re trained, although at different levels of expertise, to handle these specific types of adjustments.
  9. Keep copies of all documents going and coming during the correspondence exchange, and a log of what each party has done. This record can be critical in the not-too-infrequent situation where the IRS can’t find your past replies.

Online Stewardship is here to help, by minimizing the risk of these matters occurring.  If they do occur and you require the services of a CPA, our parent company, Patrick & Robinson, CPAs, can provide the assistance you need. 

Let us know if we can help: call (904) 398-4747 or Email our Client Relations Coordinator, Lynn Barwell, lynn@OnlineStewardship.com, and we’ll look forward to making your life less…taxing!

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