Handling IRS Notices
Don’t panic if you get an IRS notice in the mail. IRS notices can be quickly resolved and your IRS problems will go away eventually.
Millions of notices are sent by the IRS each year. These could be anything from default notices to corrections on tax returns. Instructions on how to resolve the matter are included in every issue-specific notice.
Every notice has a special CP (collection process) number assigned to it. The numbers can be seen at the top of page one of the notice and on the left side of the tear-off stub that is normally included.
The most common notices are:
- CP12: Math error � overpayment of $1 or more
- CP14: Balance due
- CP49: Overpaid tax applied to other taxes you owe
- CP90: Notice of intent to levy (Final notice, simultaneously sent with CP297)
- CP297: Final notice � Notice of your right to a hearing (CP90 & CP297 are sent simultaneously)
- CP91: Final notice before levy on Social Security benefits
- CP298: Final notice of intent to levy on Social Security benefits (CP91 & CP298 are simultaneously sent)
- CP161: Balance due (No math error)
- CP501: Balance due reminder notice
- CP504: Balance due urgent notice
- CP523: Installment agreement notice of default
- CP2000: Notice of proposed adjustment for underpayment or overpayment
If you agree with the change on the notice then no reply is required, unless you owe a balance. If this is the case, send your payment basing on the details in the notice. Prompt action on your part will make sure that you only need to pay additional tax and haven’t been assessed with penalties or interest.
In cases of disputes, you may contact the IRS through the information included on the notice. It takes up to 30 days for the IRS to reply, so call or write to them promptly.
The tear-off portion of the notice and additonal documentation should be attached to your letter.
The response may just answer your questions or it may be another notice requesting more information. Just follow further instructions.
Always keep copies of IRS correspondences.
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