If you receive a notice from the IRS or state, there is no need to panic. When you panic, you act irrationally which can include ignoring the notice. That is the last thing that you want to do. Notices can be sent out for a variety of reasons, such as:
-The agency received info that you did not report (CP 2000)
-Taxes have not been filed
-Audit- The least frequent of these 4.
When you receive a notice you usually have limited time to respond so it is important to act quickly to come up with your game plan so that you have time to execute and respond to the agency. Next week I will talk about the response process.