You hoped that day would never arrive. You're sorting through the mail and there it is -- THE DREADED LETTER FROM THE IRS! While staring at the envelope your heart starts beating to the tune of the funeral march. What do you do? Panic? Throw it away with the junk mail and pretend you never saw it? Hide it under the kids' bed where it will not be found until they leave for college?

RELAX! Open the envelope. It might be good news, too! If it's not, make a phone call to your tax professional. If you filed your own return, then contact the National Association of Enrolled Agents at 1-800-424-4339 to find the nearest EA. Enrolled Agents are tax professionals licensed by the U.S. Treasury to represent you before the Internal Revenue Service. Be sure to have the following materials on hand:

1. A copy of the tax return in question.
2. All paperwork that was utilized to prepare that tax return. This would include W-2s, 1099s, bank interest and dividends, investment statements, mortgage statements, medical bills, statements from charities, and any business-related income and expense statements.
3. Any other correspondence you might have received from the IRS concerning the year in question.

Your Enrolled Agent will ask you to sign a "Power of Attorney" form. This form allows your EA to discuss information relating to the particular tax period(s) in question with the IRS. It does not give them access to any matter other than income tax.

Be prepared to work with the Enrolled Agent to resolve this matter. It may be as simple as sending in a copy of a neglected form. Or it may be a matter that is resolved with an installment agreement to pay an outstanding amount. Whatever the issue is, you can be confident that your Enrolled Agent will be able to assist you and steer you in the right direction. You will be able to breathe easier. That is until you get that other dreaded letter in the mail -- "Dear Parents, Enclosed is your college tuition bill for the current semester. . ."

Tax laws are subject to change at any time.

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