What Do IRS Notices Mean?

Don't panic if you get an IRS notice in your mail. Most IRS notices are quickly resolved and your IRS issues will go away before you know it.

The millions of notices mailed by the IRS every year are always specific to an issue, and may range from mistakes on tax returns that need corrections to a notice of default, and always include instructions on how to fix the matter.

The top of page one and the left side of the tear-off stub of the notice shows the specific collection process or CP number assigned to it.

The common CP (collection process) numbers include:

• 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, sent simultaneously with CP297)
• CP297: Notice of your right to a hearing (Final notice, simultaneously sent with CP90)
• CP91: Notice before levy on Social Security benefits (Final notice, simultaneously sent with CP298)
• CP298: Final notice of intent to levy on Social Security benefits (CP91 & CP298 are simultaneously sent)
• CP161: No math error, balance due
• CP501: Balance due reminder notice
• CP504: Urgent notice � balance due
• CP523: Notice of default on installation agreement
• CP2000: Notice of proposed adjustment for underpayment or overpayment

You don't have to reply if you agree with the notice and don't owe a balance. Send your payment based on the information on the notice if you do owe a balance. Prompt action on your part will make sure that you only owe additional tax and haven't been assessed with any penalties or interest.

If you find the notice disagreeable, call the IRS as soon as possible and state your reasons. The notice will have a phone number. If you wish, you can mail a written explanation but it has to be done in a timely manner. Show the reason why you disagree with the notice in your letter. Always attach the tear-off portion of the notice. Be patient as the IRS may take up to thirty days to respond.

Don't panic if the IRS responds with another notice asking for more information and just follow the additional instructions.

Keep copies of correspondences with the IRS for record-keeping.

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Originally posted 2007-11-27 04:06:11. Republished by Blog Post Promoter

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