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Health & Fitness

Community Update


Oops. You Owe the IRS More Interest















The IRS is having a bad year. First it was the acknowledgement of mishandling non-profit applications for groups with "Tea Party" and "Patriot" in their name. Then it was the bad publicity around lavish spending at IRS internal conventions and meetings. The latest oops is the admission that notices sent out to taxpayers in July miscalculated the amount of interest owed. Here is what you need to know:



Important Did you receive a CP2000? If you receive a notice from the IRS using form CP2000 saying you owe additional tax, there is a good chance the interest calculation on the notice is incorrect. Unfortunately, the amount stated in the incorrect notices is too low. You will owe more.



A dozen tax planning triggers







Important How do I know? The incorrect notices were sent in early July. Notice dates prior to and after July 2013 should be correct.



Important New Notices. The IRS has stated they will be sending out corrected notices to affected taxpayers.



Important What should you do? Since your incorrect notice will not be labeled as such, what should you do? It is always best to respond to IRS notices in a timely fashion. So respond to the notice as appropriate using certified mail. Corrected payments can be made at a later date.





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