What You Have To Know About IRS Computer Notices

You might be scared of your mailbox if you have IRS issues. Will I get a notice from the IRS today? Was an error found in my tax return by an IRS computer audit? Do I owe the IRS more taxes?

The IRS uses a computer system to check tax returns and send out notices with the information usually from the IRS's own database and from third-party sources. If an error was uncovered on your tax return, you'll get a notice about the correction, whether you're required to pay more taxes or are getting a refund (very unlikely). The balance due includes interest and penalties.

There are more than 300 kinds of IRS computer notices, most commonly:

• Claims you didn't declare all of your income: The IRS computer determines if you have reported all of your income by scanning its files and comparing information.
• Claims you made a math or clerical error: Clerical and math responses are checked when the IRS computer analyzes your return.
• Claims you failed to file your return: The IRS computer determines if a return was filed as needed.

Do not hesitate to ask the IRS for corrections if you receive one of the 300 computer-generated IRS notices and it is not correct. File copies of all IRS correspondence in your records.

You will receive IRS computer notices called the "500 series" if you do owe the IRS more taxes and do not settle within thirty days of getting the notice. These CP-501, CP-503, and CP-504 notices are bills. CP-501 serves as a reminder that you need to pay a tax debt. Your immediate action is demanded with a CP-503. You are urgently reminded to take action now and threatened with a levy with a CP-504.

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Originally posted 2007-12-03 04:08:25. Republished by Blog Post Promoter

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