IRS NOTICES ABOUND – HOW DOES AN ENTREPRENEUR RESPONDOct 12, 2021
Accounting is an intimidating business aspect to face as an entrepreneur. 2020 showed us firsthand just how complicated things can get; frequently changing tax laws, regulatory changes, and COVID relief bills. Even for the most experienced accountant, 2020 and 2021 have been a challenge. At The Launchpad Experience, we have been diligently staying on top of all changes occurring over the last 18 months. Just like the majority of people in the country, our members have experienced a tremendous number of bumps in the road during these times.
The IRS has been issuing numerous collection letters to entrepreneurs throughout the country. Due to employee shortage issues, it’s been even more challenging to connect with them to handle those letters. But, even with the employee shortages that the IRS is facing, they are cracking down on incorrect filings and late filings.
With all of these obstacles, it is imperative to ensure your business’s tax filings are correct and timely. The easiest way to do this is by working with a qualified tax professional. If there is one thing that will make your life more complicated as business owner, it is getting a letter from the IRS saying you messed up on your taxes.
If you do find yourself getting a letter from the IRS, don’t panic. It does need to be handled immediately, but your accountant will be able to take care of it for you. You need to pass that letter along to them as soon as possible; this is a time sensitive matter. Depending on the situation, your accountant will likely have to respond on your behalf. The more time they have to work everything out, the better. Any subsequent letters you receive from the IRS need to be given to your accountant as well.
WHATEVER YOU DO, DO NOT IGNORE THESE IRS LETTERS.
We understand that accounting work is a big responsibility to have on your plate. That is why we highly recommend getting a CPA on your team; more specifically, one who has experience and knowledge surrounding your business specialty.