IRS Notices can be intimidating and sometimes have disturbing news to relay to taxpayers, but there are many times when not opening an IRS Notice can cost you thousands of dollars! The IRS will send you IRS Notices regarding a large amount of potential information. Everything from a small issue with your tax return, to reminders about filing deadlines, to notices of debt owed, even notices warning of bank levies are sent by the IRS.
When you receive a letter from the IRS noting the type of letter is as easy as looking at the envelope. If the IRS Notice comes to you certified mail, you more than likely have a severe collections letter or notice of Federal Tax Lien. Open these letters immediately! The IRS will only allow for a small amount of time before they move forward with their threats! Common types of certified letters are:
- CP-504or CP-504B: Notice of Intent to Levy or Seize Property
- LTR 1058: Final Notice of Intent to Levy or Seize Property
- CP-523: Notice of Terminated Installment Agreement and Intent to Levy or Seize Property
- LTR 668 Y: Notice of Filing of Federal Tax Lien
All of these certified IRS Notices are warning you that the IRS is taking collecting your back tax debts seriously. Failing to open a certified IRS Notice could mean you will be surprised by a wage garnishment, bank levy or find your personal property seized!
IRS Notices: Not Certified Means Not Important, Right?IRS Notices will not always arrive via certified mail. Some of the most important IRS Notices come in simple, unassuming standard envelopes. If you do not review these notices, you may find that you have missed an opportunity to answer questions regarding information needed for your tax return and now are penalized heavily! You may also find that the IRS cannot read your tax return, or needs more information to process your tax returns properly. Some of the more common IRS Notices sent by standard mail are:
- CP-2000: Notice of Proposed Assessment
- CP-21A: Changes to Your Tax Returns and Debt Now Owed
- CP-31:Your Tax Refund Was Returned Undeliverable
- CP:53: We Cannot Direct Deposit your Refund, You Will Receive it by Mail
- LTR 2357C: We Have Accepted Your Request for Penalty Abatement
Not all IRS Notices are bad news! Some notices are informing you that your refund is coming to you by mail, or even that your request for a penalty Abatement has been approved! However, some of the IRS Notices you may receive will provide you with a narrow window of time to correct the situation.
IRS Notices: I Read My Letter - Now What?IRS Notices are sent to you with the hope that you will read it and fix whatever issue may have occurred, or just to let you know what the IRS is doing with your account. Now that you have taken the time to open the IRS Notices you have received, find out what the IRS needs from you. Not all notices are going to demand payments, or threaten you with aggressive collections tactics, but if you receive one of those, it is time to determine what type of IRS Agreement will best suit your tax debt.
If your IRS Notice is warning you about an audit or corrections to your tax returns, and now you owe the IRS money, now may be the time to seek professional help in battling the IRS. The IRS knows that most people are not going to open their mail, and their hopes are that you will ignore it. Ignoring it means you will lose out on an opportunity to prove you do NOT owe them! If the IRS says you owe them for a correction they made on your tax return, fill out the form below or call 800-520-5424 to speak with a qualified professional who understands the IRS's regulations and can help you resolve this issue quickly!
The most important thing to remember when reading your IRS Notices is that you have options. Just because the IRS is threatening you with collections, fixing a return so that you owe them, or disallowing a claim does not mean that they are right! Putting your head in the sand is letting the IRS win! Find a professional that will be able to determine what you can do to protect your wages, bank accounts and personal property and above all make sure you really do owe the tax debt!