Lynn Parent - What to do when you get a notice from the IRS

According to retired IRS agent, Lynn Parent, you open it. You would be surprised how many people just don't open them.  The IRS does not send email because they consider it unsecured communication.  Some helpful hints from Lynn:

1. Only send mail to the IRS by certified mail or go on line to pay at IRS.gov

2. Open correspondence from the IRS and see what they want.  It could be as simple as identity issue, a missing signature or missing documents - don't assume the worst.

3. Audits are getting few and far between because the staffing levels for auditors has been cut (good news for you).

4. Assessments are arbitrary amounts by the IRS for non or late filers.  the SFR - substitute for return (you failed to file a return), so the IRS creates an amount of the assessment - best guess on their part, but you would still owe it and penalties.

5. The majority of problems with filing falls under the small business/self-employed category.  Usually because expenses are too high for revenues.  You can not have business losses 100% of the time.