What to Do if You Receive an IRS Letter: A Doctor’s Guide
- Sep 1
- 2 min read
Receiving a letter from the IRS can feel stressful, especially when you’re balancing patient care and running your practice. But not all IRS notices mean you are in trouble, and responding calmly and correctly is key. At ISTAXPro, we provide accurate bookkeeping and tax return preparation for doctors and dentists, ensuring your records are organized so you can handle IRS letters with confidence.
Why You Might Receive an IRS Letter
Doctors and dentists may receive IRS notices for reasons such as:
● A mismatch between reported income and IRS records
● Missing or late tax filings
● Questions about specific deductions or credits
● Notices of taxes owed or potential refunds
● Requests for additional documentation
Not all letters require payment; many are informational or request clarification.
Steps to Take If You Receive an IRS Letter
1. Don’t Ignore It
Set the letter aside temporarily if you need to, but don’t ignore it. IRS letters have deadlines for response, and ignoring them can lead to additional penalties and interest.
2. Read the Letter Carefully
Check:
● The notice number in the top or bottom corner
● What the IRS is requesting or notifying you about
● The tax year in question
● Response deadlines
Many issues can be resolved by providing documentation or clarifying information.
3. Compare with Your Records
Review your tax return and your practice’s bookkeeping for the year in question to see if you can identify any discrepancies related to the notice.
Accurate, organized books can make this step straightforward.
4. Respond Promptly
If the IRS requests documentation or payment, follow the instructions provided and respond before the deadline. If you disagree with the notice, you can typically respond with an explanation and supporting documentation.
5. Keep a Copy of Everything
Maintain a record of:
● The IRS notice you received
● Any documentation you send
● Proof of mailing or electronic submission
This will protect you if further clarification is needed later.
When to Seek Professional Help
Seek assistance if:
● You receive a notice of audit or examination
● You do not understand what the notice is requesting
● You disagree with the IRS but are unsure how to respond
● The notice involves complex issues, such as large deductions, practice sales, or multi-state tax matters. Having professional support can reduce stress and help you resolve issues accurately.
How ISTAXPro Supports Doctors Facing IRS Notices
At ISTAXPro, we help doctors and dentists:
● Maintain organized, accurate records to reduce the likelihood of notices
● Review IRS letters and explain what they mean
● Prepare clear, accurate responses with supporting documentation
● Handle communication with the IRS when needed
Stay Calm and Organized
Receiving an IRS letter is not uncommon, and many notices can be resolved easily with clear records and prompt responses.
Contact ISTAXPro today if you have received an IRS notice and need
help reviewing, understanding,
or responding so you can stay
focused on your practice while
protecting your peace of mind.
