Receiving an IRS notice can be a stressful experience for any taxpayer. Whether it’s a request for clarification or a more serious audit notice, it’s crucial to understand what these communications mean and how to respond. IRS notices serve various purposes, each with its own implications. Here’s a breakdown of common IRS notices and how our experts can help you handle them.
1. Notice of Balance Due (CP14)
The CP14 notice informs you that you owe money to the IRS, possibly due to underpayment, penalties, or interest. Prompt action is essential to avoid further penalties.
How We Can Help: We’ll help you review your tax return, assess the reason for the balance, and guide you on payment options or ways to resolve the debt.
2. Notice of Tax Due (CP501)
Similar to the CP14, the CP501 notice is a reminder of an outstanding balance. Ignoring it can result in additional fines, interest, and levies.
How We Can Help: We can identify any errors, explore payment plans, or negotiate an Offer in Compromise if you can’t pay the full amount.
3. Audit Notification (CP2000)
A CP2000 notice indicates discrepancies between your reported income and the IRS’s information from other sources. It proposes changes to your return and additional tax due.
How We Can Help: Our experts can clarify the discrepancies, gather necessary documentation, and guide you through the audit process to reduce unnecessary tax liabilities.
4. Notice of IRS Lien (CP504)
The CP504 notice means the IRS is placing a legal claim on your property or assets to secure payment for your debt. This could affect your credit and assets.
How We Can Help: We can help resolve the lien, negotiate payment arrangements, or explore relief options to protect your assets and credit.
5. Notice of Levy (LT11)
A more severe notice, LT11 informs you that the IRS is taking action to collect taxes owed, such as garnishing wages or levying bank accounts.
How We Can Help: We’ll help stop the levy, negotiate with the IRS, and help you apply for alternatives like an installment agreement.
6. Identity Verification Notice (Letter 5071C)
This notice suggests that the IRS suspects your identity was used fraudulently. It requests you verify your identity before processing your tax return.
How We Can Help: Our team will assist you in verifying your identity with the IRS and ensure your tax return is processed without delay.
7. Missing Information Notice (CP23)
The CP23 notice indicates that you left out important information from your return. This may delay processing or trigger additional taxes owed.
How We Can Help: We’ll guide you in providing the missing information and help you avoid penalties or interest.
8. Refund Delay Notice (CP53)
If your refund is delayed, the CP53 notice will explain why. Errors or incomplete information could be the cause.
How We Can Help: We’ll track your refund status, contact the IRS, and resolve the issue to ensure your refund is issued promptly.
How We Can Help
Dealing with IRS notices can be overwhelming, but you don’t have to face it alone. Our team of tax experts specializes in IRS communications and resolving issues quickly. Whether you’re dealing with a simple balance due notice or facing serious collection actions, we offer comprehensive support to ensure that your taxes are handled correctly.
We can assist with:
- Reviewing IRS notices for accuracy and understanding the required action
- Negotiating payment plans or reducing your tax liability
- Guiding you through audits and providing necessary documentation
- Assisting with tax relief options, including Offers in Compromise or penalty abatements
If you’ve received an IRS notice and aren’t sure how to respond, don’t wait for the situation to escalate. Contact us today, and let our experts help you resolve the issue efficiently and effectively.