Don't panic.
Prepare a cup of tea, relax, breath deep and "read the notice" Not all IRS notices are bad.
Every notice will have the following information
- Date of the notice
- Your social security number (Taxpayer ID)
- The form number you filed or didn't file
- Tax period - the year of the tax issue
- A control number (internal numbering system)
- Penalties charged
- Interest charged
- Amount owed
- Total payments you made, if any
If you do not understand the notice, contact your tax professional. If you are determined to call IRS yourself; do yourself a favor and read the Article: 7 Tips to Help You Survive a Telephone Conversation with IRS
If you understand why IRS has contacted you and you agree with the notice, then obtain a money order and send the monies that are requested.
However, if you do not agree with IRS's conclusion OR if you agree but don't have the monies, contact your tax professional. He/she can help you request for an Installment Agreement.
IRS usually will give you 60 months to pay your tax liability in monthly installments. There are certain provisions that must be meet. It is highly suggested that you contact your tax professional, this is not the best time to learn as you go.
This tax tip has been provided by http://www.taxeswilltravel.com an online tax help center for individuals with back tax issues and concerns.
For legal explanation and details about the above article, visit: http://www.irs.gov