If you receive an IRS notice stating that you owe money – don’t panic – you may not necessarily owe the IRS anything.  The IRS manually enters some tax data into their computer system.  Sometimes people make mistakes, after all we’re only human (I know I do – this is why we always double-check and sometimes triple-check our work.)

So far, two of our clients have received IRS Notices stating that they owe money for their 2013 taxes.  The first client forgot to provide us with a 1099-MISC for money that they withdrew early from their retirement IRA (the married couple are in their ’30s and just had a child).

The second client received an IRS Notice stating that they did not report $45K of 1099-MISC Income and now owe taxes, interest and penalties.  We have a copy of the 1099.  The client received $4,500.  Clearly, the individual entered an extra zero into the IRS computer system.

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