IRS Letters and Notices

Have you recently received an IRS letter or notice? As a taxpayer or business, this is often stressful, frustrating, or scary, but this should not be the case. While you must never ignore a letter or notice from the IRS, receiving one does not automatically mean you are in the wrong.

However, it is important to know how to respond or act when you receive a specific IRS letter or notice, which is why you need the services of an experienced tax attorney. At Cumberland Law Group, we have been helping individuals and businesses in Atlanta to settle their tax issues, and we are here to help with your IRS letters and notices.

The IRS Letters and Notices You Can Receive as a Taxpayer

Not every IRS letter and notice requires the same response or action, as these letters are always tailored to address specific issues. Therefore, you need to know what your notice or letter says before you can take action.

Here are some of the different types of IRS letters and notices that you can receive:

• The IRS CP11

This notice is issued when there has been a miscalculation by a taxpayer on their tax returns. The miscalculations will be described, and any balance owed will be indicated.

• The IRS CP14

This notice informs taxpayers of taxes owed due to underpayment or non-payment. It is often the first notice a taxpayer receives if they owe the IRS money.

• The IRS CP15

This is a penalty notice that notifies taxpayers of civil penalties for failure to pay employment or excise taxes.

• The IRS CP22A

This notice is issued when updates have been made to a taxpayer’s returns due to corrections by the filer or amended returns. Any amount owed to the IRS due to these updates will be indicated,

• The IRS CP22E

This notice is sent after the IRS audits your tax return and notices you still owe some amount. You will have room to disagree with the results of the audit. However, if the audit is right, you will need to pay the balance owed before the deadline indicated elapses.

• The IRS CP23

This notice is sent whenever there are discrepancies between your estimated tax payments and the amount posted to your account. The CP23 can also be issued if you made changes to your returns while it was being processed, and the balance due because of these issues will be indicated.

• The IRS CP75

This is a request notice sent when the IRS requires supporting documentation to verify eligibility for claims made on tax returns. All documents required to process the claim will be listed and should be sent to the address or number provided.

• The IRS CP88

This notice is sent when the IRS will not issue a refund claimed due to a taxpayer’s records indicating they have one or more years of unfiled returns.

• The IRS CP90

This is an intent to seize assets notice typically sent after the IRS has issued multiple other notices seeking payment for taxes owed.

• The IRS CP91

This is an intent notice sent to notify taxpayers that the IRS will soon be taking a portion of their social security benefits, up to 15%, for the taxes they owe.

• The IRS CP161

This notice is sent to businesses that have made errors in their tax returns, showing the total balance due, including accrued penalties and interest.

• The IRS CP162

This notice is sent to taxpayers with tax penalties and provides a 30-day period to appeal the penalty or pay the penalties before they accrue further.

• The IRS CP297

This is a final notice sent to businesses to inform them of the intent to seize assets unless owed taxes are paid.

• The IRS CP501

This notice is the first reminder sent by the IRS to notify a taxpayer of outstanding taxes due before other notices and tax liens are issued.

• The IRS CP504

This is the final Notice sent to a taxpayer with a due balance before the IRS takes other actions, such as seizing assets or filing a notice of tax lien. Businesses will receive a similar notice as CP504B, and recipients have 30 days to act.

• The IRS LT 1058

The IRS has likely made numerous attempts to collect by the time the taxpayer receives this notice. If no action is taken within 30 days, the IRS has the right to levy or seize assets.

• The IRS LT 11

This notice is sent when the IRS hasn’t received payments from a taxpayer with overdue taxes. It shows the plan to take further action, such as seizing assets or placing liens if no action is taken.

• The IRS CP523

This notice is sent to taxpayers who had due taxes and have defaulted on existing installment agreements. With this notice, the IRS is showing a plan to terminate the agreement unless one gets back into compliance.

• The IRS CP2000

This notice is sent when the IRS is proposing changes to a taxpayer’s tax returns based on the information they have. Do remember this notice does not show a bill, but the proposed amount, based on the differences noticed.

How to Respond to IRS Letters and Notices

IRS letters and notices need to be handled swiftly and with the utmost professionalism as ignoring them could have unwanted consequences, such as hefty penalties or tax liens. While not all letters you get from the IRS are because of owed taxes. Every issue raised needs to be addressed, be it:

• Additional information about the taxpayer
• Questions about tax returns
• A notice of seizure of assets
• A notice of intent to levy
• Updates on taxpayer’s status
• A letter of Trust Fund Recovery Penalty (TFRP) violation
• A delay or issue in processing a claim

Since each IRS notice and letter sent to a taxpayer contains a unique issue, there is never a one-size-fits-all solution. Instead, the best approach lies in first understanding what the IRS requires, which is best done by partnering with a tax attorney who can assist you in navigating these waters, given how complex the tax code and regulations are in the USA.

Stop Stressing Out About That IRS Notice and Take Action!!!

Nothing ever prepares you to deal with an IRS notice or letter, whether you are an individual taxpayer or a business. Nonetheless, this is not a reason to panic or stress out when Cumberland Law Group is ever within reach to help you resolve these issues.

Instead of walking down this path alone and risking making mistakes that could lead to more issues with the IRS, our tax attorneys will ensure everything is ironed out as efficiently as possible. Give us a call, email us, or book an appointment today, and we will help restore the good relationship you have always had with the IRS.

FAQs

How long do I have to respond to an IRS letter and notice?

Typically, you have at least 30 days to respond to an IRS letter and notice. Nevertheless, the best decision you can ever make is to respond as swiftly as possible before the IRS takes further action against you.

What happens when I can’t pay the IRS taxes owed?

Bad times happen, and if you cannot meet your tax obligations, there are several options you can explore. At Cumberland Law Group, we will guide you on the best options, depending on your current financial situation, to avoid accruing more penalties or facing liens.

How much will it cost me to hire a tax attorney?

The amount you will pay our team of experienced attorneys depends on how much work is needed for your case. Luckily, we offer a free no-obligation consultation where you will learn about our available options after evaluating your needs.

Ready to solve your IRS issues? Contact us today to discuss your case: Phone (678) 539-0591