What is the best practice after receiving IRS correspondence?

The best practice after receiving IRS correspondence is to investigate the issue before taking any action. This approach is essential because IRS letters can contain important information, such as notices about tax due, corrections to your tax return, or requests for additional documentation. By thoroughly reviewing the correspondence, you can understand the nature of the communication and determine the appropriate steps to take.

Investigating the issue allows you to ensure that any potential discrepancies are addressed correctly. It may involve checking your tax records, understanding what the IRS is requesting, and verifying if there is any need for further action on your part, such as making a payment, providing additional information, or correcting your tax return.

Engaging in this careful assessment helps to avoid unnecessary confusion or mistakes that could lead to further complications with the IRS. Taking the time to understand the situation gives you the knowledge needed to respond accurately and promptly, which can help smooth out any potential issues moving forward.