Have a tax problem? Don’t ignore it; take swift action

On Behalf of | Sep 20, 2019 | Income Tax

After filing personal taxes, the Connecticut Department of Revenue and the Internal Revenue Service have several years in which they can look for issues with one’s filing and seek more money. When an unexpected tax bill arrives in the mail, it can be rather stressful. Those who believe a mistake has been made might be tempted to ignore the tax bill, but that will only cause problems. If a tax issue arises, it is best to face it head-on as swiftly as possible.

Recently, a story was shared about a woman in another state who was sent a $216 million tax bill. Based on her income level, it was clearly a mistake. It turned out, a glitch with the popular online tax preparation software she used to file was to blame. Her state’s DOR did not catch the issue right away, but eventually, it was learned that this glitch affected several others as well. Those affected have been given the opportunity to re-file or amend their 2018 returns.

Mistakes of this size are not common, but errors, in general, do frequently happen when dealing with taxes. Taxpayers can protect themselves by keeping copies of their returns and all their supporting documentation. They can also help themselves by reaching out to the DOR or IRS when they believe a problem exists. Those who choose the wait-and-see approach may find their tax liabilities will continue to grow, which will only hurt them in the long run.

Not all tax problems require legal assistance to resolve. However, those in Connecticut who believe that they are beyond the point of being able to deal with such issues on their own certainly have the right to seek help with the matter. With the right assistance, tax issues can be resolved quickly and quietly. The sooner the problem is addressed, the sooner one can move on.