IRS Notices and Letters
I have just received a Final Notice of Levy or a Final Notice of Intent to Levy from the IRS. What should I do next?
If you cannot pay the tax in full you better speak to someone who knows what they are talking about or the IRS will take advantage of your lack of knowledge and they do it almost every time. The IRS will act within the 30 days prescribed in the letter and the IRS will take enforcement action and send notices of federal tax liens and federal tax levies to the respective sources. At this point, the process becomes much harder to resolve.
I have just received an IRS Notice, what is my next step?
If you have just received an IRS Notice or Letter, the very first action you should take is to make sure your notice or letter is correct. You should always compare it to your federal tax return in question and make sure the document is correct. If it is correct, follow up to make sure the case is closed off of the IRS computer system. If you fail to close the notice or letter out of the IRS system, it can lead to IRS taking more aggressive action.
If the IRS Notice or Letter is incorrect, what should I do?
You want to immediately contact the IRS letting them know just where the problem may be. There will always be a telephone number on the letter that matches the type of problem you have. There are dedicated telephone lines that the IRS uses to correspond with the problem you are having. Make sure the case file is closed from the IRS computer system.
What are a list of common letters the IRS sends out?
Listed are the most common Notices that the IRS sends out. Be very careful if these Notices come out certified. You must follow up on ALL certified mail.
- CP11 – Changes to your tax returns.
- CP14 – Your balance due to IRS.
- CP22A – Data processing adjustment and the balance is more than $5.
- CP49 – Overpayment applies to another tax period.
- CP90/CP297 – Final Notice Notice of Intent to Levy and Notice of your right to a hearing.
- CP297A – Notice of Levy and your right to a hearing.
- CP91/CP298 – Final notice before levy on social security benefit.
- CP501 – Reminder Notice, balance due IRS.
- CP503 – Second IRS notice on balance due.
- CP504 – Final Notice balance due.
- CP521 – Installment Agreement reminder notice.
- CP523 – Default of installment agreement.
Does the IRS give you a grace period to get back with them?
The only grace period given by the IRS on notices and letters is if you contact them directly or by letter and IRS confirms in writing or on the telephone.. The IRS gives these grace periods out, but their follow up computer system will be right back on you if you do not comply. It is common on complicated cases for the IRS to give you more time. The matter will not go away by itself, so keep up with the case.
What cautions are there when contacting the IRS?
Always make sure you get the ID or badge number and the name of the IRS agent working on your case. It is the only proof you spoken to the IRS. The trouble with most individuals, non-professionals giving answers to questions, is that the IRS will back you up in the corner without even knowing you are there. It is hard to defend the answers you directly gave to the IRS.
How should I respond to the IRS Notice or Letters and what should I expect ?
First of all you did the right thing by responding to the IRS notice or letter. Without that follow up, the IRS will take the next step, whatever is called for in the letter. The IRS will take up to 6 to 8 weeks before they respond to the letter you have sent to them. Make sure you keep copies of all correspondence and send all mail out certified or registered. Expect the IRS to be very slow.
Does the IRS have to send out certified letters and notices?
As a general rule the IRS sends out only very important letters to you by certified mail. Certainly, a final notice before seizure is one of those letters sent to you certified. Any notices of garnishment or federal tax levy or final notice of assessment are sent out to you certified. Also notices of tax deficiencies are sent to you in that fashion as well.
How can I tell where to find what my notice is all about?
The notice number prints on the top of the first page of all IRS notices and on the lower left-hand side of the tear-off stub included with most of them. That number identifies the message that is delivered in every notice. While the contents may vary somewhat, every notice with the same number has the same basic purpose.
Should I contact IRS by myself?
If it is a simple matter, call them or write them and remedy the tax problem. The only time you need a tax professional is if you know you are going to have a problem. Most notices can be cleared up by one contact with the IRS.
What happens if I receive an email from the IRS?
Do not respond. It is fraudulent, report it to the federal government. The IRS never emails and they are not allowed to send the public emails. These are scam artists working you. Many scams are hitting the computer systems to obtain illegal information, so be very careful.
