If you receive letter 3572 from the IRS, it means that the federal income return for the year shown on the notice has been selected for further examination. I know it’s not the news you were probably hoping for but don’t panic. You will get through it.
Here’s what you should know and how to respond to IRS letter 3572.
What is the purpose of the letter?
Tax compliance officers use Letter 3572 to request that taxpayers call to schedule an initial appointment for a tax examination (aka audit). According to IRS.gov, you have 14 days to respond, including the time for mailing.
Note: The IRS uses Form 3572-A for a partnership or corporate return.
Have questions about other IRS notices or letters? Read the definitive guide.
How do you respond to the IRS Letter 3572?
- When you receive the letter, be sure to read it in full.
- Whether you agree or not, you need to call the IRS and schedule an appointment. You can make your case either way during the meeting.
On the letter, you will find a phone number and the hours in which to call. There will also be a deadline so be sure to call within the given time frame.
What happens if you don’t respond to IRS Letter 3572?
If you do not respond to Letter 3572, the IRS will issue an examination report which results in you owing additional tax, penalties, and interest. Being so, it is best to call.
If you have any questions about the request, what to bring, why these issues are problematic, etc., you can ask the IRS representative when you call to schedule your appointment.
What happens during the appointment?
During the appointment, the IRS will ask you to provide documents that verify the accuracy of information on your return such as your income, deductions, exemptions, and credits.
Your letter will list the main issues on which the audit will focus. Further, it will include an ‘Information Document Request’ which lists all of the supporting items that the IRS would like you to provide. It’s best to organize the documents according to the issues they support.
The auditor will attempt to resolve the issues at hand during the initial meeting. However, if they need additional documentation, a follow-up meeting will be required.
In the end, you may owe more taxes, fewer taxes, or have no change to your tax responsibility.
Who should attend the initial meeting?
You may have another person represent you in the audit. However, you will need to attend the meeting with them unless you have completed Form 8821 for Tax Information Authorization or Form 2848 which assigns Power of Attorney. Further, if you filed a joint return, you and/or your spouse can attend.
What if you owe more than you can pay?
The primary concern for many taxpayers is that an audit will result in them owing more than they can pay. However, even if this is the case, there are programs in place that can help.
The IRS offers payment plans and other settlement options so that you can pay any tax debt you owe without putting you into financial despair. Navigating the best route can be confusing which is where tax relief firms can help.
Tax relief firms specialize in reducing tax debt and helping taxpayers settle it in a way that is most beneficial to their situation.
If you need support, review and compare tax relief firms below.
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.