Today’s topic is income tax and what one could do when you face a tax audit or a notice to pay more taxes. If you’re reading this article via Google search, then chances are you’re facing tax charges from the Internal Revenue Service. Or, you are skeptical while filling your tax return. Either way, you’re at the right place. So keep on reading.
In 2018, on a March morning, I was delivered an IRS letter. It was a fat envelope and I was sure this was related to my last year’s return. It was a notice to pay additional taxes. I missed out reporting my income from two sources. The total bill was for $820, towards a dividend income from two of my brokerage accounts. The envelope contained a detailed tax calculation breakdown. We have around 15 different financial accounts making the paperwork lengthy and making the IRS envelop a fat one.