When we receive an IRS notice, our first response is “I don’t understand? I paid my taxes…why me?”
The real Question is why not you?

According to the IRS, there is loss of revenue of over $100,000 billion per year in unpaid taxes. This has put a push on an increased use of third party information statements (1099S, 1098S).  Some examples would be that the financial industry is now responsible to notify the IRS of the cost basis of stocks sold. Real estate owners need to prepare 1099S for their plumber, painter, etc…and the list goes on!
The IRS is now in pursuit to find lost income and correct over-reporting of deductions and credits. So if you do receive a notice, don’t be too surprised. Your first step should be to understand the notice or the letter you received.  You can do this by going to: https://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter.
Once you understand the notice, your next step is to address the matter. You must begin by responding in a timely manner and if needed, seek expert advice.
Keep in mind the IRS can also make mistakes so don’t assume they are always correct. Make sure you and your accountant do your homework and investigate properly.
Answers from AZ