If a client coming to your office receives a notice or letter from the IRS, your client might come to you for help, and you need to know how to respond. Here are some tips should your clients get a notice from the IRS.

Do NOT Ignore It: In most cases, notices from the agency can be addressed quickly and easily. It is important that the client replies right away if a reply is needed.

 Follow Instructions: Read the notice carefully. It will tell you if the client needs to take action. The notices are usually quite specific about an issue with a tax return or account. The letter should give you the reason for the contact and instructions on how to handle the issue.

Correction Notices: If the IRS has made corrections to your client’s tax return, make sure to review the information provided by the agency and compare it to the original tax return. If the client agrees with the changes and there is no payment owed, there is nothing else that needs to be done. If your client does not agree with the changes, it is important that they respond. Follow the instructions on the notice for the best way to respond to the IRS.

The Premium Tax Credit: The IRS may send a letter asking your client to clarify or verify their Premium Tax Credit information. The letter may ask for a copy of Form 1095-A, a Health Insurance Marketplace Statement. You should follow the instructions on the letter. This will help the agency verify information and issue the appropriate refund.

No Need to Visit: Most notices can be resolved without visiting the IRS in person. If questions arise, call the phone number provided on the notice. Have a copy of the tax return and the notice when you call. Also, make sure to keep a copy of the notice along with the client’s tax records.

Watch Out for Scams: Don’t be fooled by people claiming to be the IRS through calls or emails; the IRS will contact you through postal mail first, not by phone. Be aware that the IRS does not initiate contact with taxpayers through email, text or social media.

 For more tips and information about notices, please visit

https://www.irs.gov/uac/if-you-get-an-irs-notice-heres-what-to-do

 

 

At Taxware Systems, we want to help you get tax returns processed quickly and efficiently. Here are the top questions we’ve received during tax season and their answers.

Q: The 8863 amount is not appearing on the 1040! What’s going on?

A: The IRS has added new due diligence requirements recently, not just for Earned Income Credit but also for the American Opportunity Credit and Child Tax credits. The new due diligence can be found in the top left hand corner of the 1040 Line Input, line [03] Due Diligence with a red X if it is required. The questions that need to be answered will be in red. Once the questions are filled out, the box will have a green check mark if the client qualifies.

Q: How do I delete a form?

A: To delete a form that you do not need, simply go to Forms and Schedules and click [88] Clear Forms. Double click on the form that you do not need and it will disappear from the list.

Q: How do I e-File?

A: If you are using the A2A system, our standard way of e-filing, you can do that by clicking on [20] E-File in the Summary Menu. Then go to [02] Print 8879. After the 8879 is printed, the A2A E-File button will light up. Click on the button and a prompt will ask if you want to transmit. Click yes and that is all you need to do. You can check the status of the return by clicking on line [10] ELF Tracker from the main menu.

Q: When I make a change to my preparer or ERO information, it doesn’t reflect on the tax return…

A: Preparer and ERO information are set up outside of your tax returns and are often set up as defaults. To reflect a change made in the ERO or preparer information after starting a tax return, simply re-select the ERO or preparer on lines [04] and [05] of the basic information for that return.

If you have other questions, please feel free to contact us!

support@taxwaresystems.com

1-800-877-1065