For most people, communicating with the IRS is a fearful event. After all, many IRS notices are requests for more money because of an apparent mistake by the taxpayer. It seems like a lose only situation. However, the IRS notice is only a beginning which notes a difference in calculation of income or requests for proof of deductions or credits. The next step is to minimize the increase in income or verify the the deduction or credit.
Here's how I do it:
From my experience, I estimate the IRS is completely right about 25% of the time. About 50% of the time, the IRS is only partially right and less is owed than the amount requested. About 25% the IRS has made a mistake and nothing is owed. In rare cases, there is even a refund.
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This is not financial or tax advice. Please consult a professional advisor.
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