IRS Letters and Notices

IRS Letters and Notices

Did you receive an IRS letter or notice? Don’t panic too much about the letter, most of these letters come off in a harsh tone but can be resolved through a few steps. Below are some normal IRS letters that the IRS sends. Each notification contains a description of what the letter is for and what are the appropriate actions to take in order to respond and resolve the problem the letter is addressing. Although the IRS is systematic, sometimes notices can be skipped if you have had problems in the past and for other reasons.

SELECT YOUR IRS LETTER OR NOTICE FOR HOW TO RESPOND

IRS CP 11: Changes to Tax Return

The IRS CP11 is a notice issued when the IRS has adjusted the taxpayers tax return as a result of a miscalculation on the filers part. As a result of the adjustment a balance is owed by the taxpayer.

The CP11 provides an explanation of the changes that were made to the taxpayers return with a specific description of the areas in the return where the miscalculations were found.

The CP11 includes a failure to file penalty and interest charges which the taxpayer is responsible to pay if they acknowledge and agree with the adjustment. If the taxpayer acknowledges and agrees with the changes the corrections need to be made on their copy of the tax return and they need to pay the amount due by the date indicated on the form.

If the taxpayer acknowledges and agrees with the changes, however, is unable to pay the entire amount due they should contact the IRS about setting up a payment plan. In the event a payment plan is set up by the taxpayer, interest and penalties will continue to be assessed on the full amount due or that portion unpaid by the taxpayer. The taxpayer can also explore alternative resolution options the IRS offers including but not limited to offer in compromise, penalty abatement or a partial payment installment agreement.

If the taxpayer believes the IRS is in error and doesn’t believe the IRS’s calculation and or specific details of the same they should contact the IRS within 60 days from the time they receive the notice and the IRS will reverse the changes they made.

If a reversal is requested the IRS will take under consideration any explanation or additional documents the taxpayer provides. Ultimately if the IRS doesn’t agree with the taxpayers request for a reversal they would forward the matter for audit.

IRS CP 22A

The IRS CP22A is a notice issued when the IRS has updated the taxpayers return as a result of a correction the filer has made to their return or amended return.

As a result of the taxpayer’s correction(s) and or amended return the IRS has updated the return. The update to the return by the IRS results in an amount due by the taxpayer.

The CP22A notice is frequently used for changes in filing status or the number of dependents being claimed by the taxpayer. The notice deadline will be indicated on the form. Failure to make the payment to the IRS in that time period may result in interest and tax penalties.

If you disagree with the changes made by the IRS or think they made a mistake, call the IRS upon receipt of the notice with your account information readily available to you.

If you are unable to pay the full amount due and agree with the changes, pay the maximum amount you can and contact the IRS prior to the due date to set up a payment plan. Bear in mind, you will be charged interest and penalties on that portion of the balance you are unable to pay. In addition, you
can discuss alternative types of resolutions with the IRS including but not limited to Offer in Compromise, Penalty Abatement or a Partial Pay Installment Agreement.

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IRS CP 22E

The IRS CP22E is a notice from the IRS acknowledging the IRS has audited your tax return. As a result of the audit, a balance is owed by you which is indicated on the notice. The notice deadline is indicated on the form.

If you disagree with the results of the audit and the changes made to your tax return you should call the IRS with the letter and have your account information readily available to you.

If you are unable to pay the full amount due and agree with the changes, pay the maximum amount you can and contact the IRS prior to the due date to set up a payment plan. Bear in mind, you will be charged interest and penalties on that portion of the balance you are unable to pay. In addition, you can discuss alternative types of resolutions with the IRS including but not limited to Offer in Compromise, Penalty Abatement or a Partial Pay Installment Agreement.

As referenced, you should respond to the CP22E by the deadline provided. Failure to pay and respond can result in the IRS taking further action such as an IRS tax lien, tax levy or other punitive actions.

Need help with an IRS letter or notice? Our qualified team of professionals and in-house IRS tax attorneys will help you get the answers you need.

IRS CP 23

The IRS CP23 is a notice from the IRS which most likely indicates they have rectified the amount of estimated tax payments you indicated were made on your tax return and the amount they have posted to your account. It can also reflect other changes made to your return while it was processed.
The CP23 will indicate a balance due as a result of the IRS amending your return.

As a result of the IRS reconciling the taxpayers actual estimated payments with those their records reflect and or any other changes they have made, you will have a balance due.

The payment due by taxpayer and the deadline date to make the payment will be indicated on the form. Failure to make the payment to the IRS by the deadline date may result in interest and tax penalties.

If you disagree with the changes made by the IRS, make sure to check your return to see if it reflects an inaccurate entry of the actual estimated tax payment you made, or if an entry exists on your return when you didn’t make any estimated tax payments. No matter the reason, if you disagree with the changes made, call the IRS upon receipt of the notice with a copy of your tax return and any other documentation you have refuting the notice.

If you are unable to pay the full amount due and agree with the changes, pay the maximum amount you can and contact the IRS prior to the due date to set up a payment plan. Bear in mind, you will be charged interest and penalties on that portion of the balance you are unable to pay. In addition, you can discuss alternative types of resolutions with the IRS including but not limited to Offer in Compromise, Penalty Abatement or a Partial Pay Installment Agreement.

Need help with an IRS letter or notice? Our qualified team of professionals and in-house IRS tax attorneys will help you get the answers you need.

IRS CP 88

The IRS CP88 is a notice from the IRS indicating that they are not going to be issuing the taxpayer a refund claimed due because their records indicate you have one or more years of unfiled returns with them.

If you disagree with the notice and find it to be in error call the IRS immediately with the notice and your account information readily available at the phone number on the notice. Explain to them why you didn’t have to file for those year(s) which are unfiled or provide proof you have already filed. You can also respond to them via mail with the response form they provide on the notice.

It is imperative that you respond to this notice in some manner. The crux of this notice is the IRS is not only withholding your return, they believe you owe taxes. You need to file a tax return for the date indicated on the form. If you are unable to prepare the tax return or have it prepared for you, make sure to call the IRS and explain your situation and that you intend to file the return. If you ignore this notice and don’t file any return, then at some point the IRS will likely file the return for you with the information they have for that tax year(s). If the IRS files the return for you, they will apply your refund to any balance due from that tax year(s). In addition, if they file for you, potentially you won’t receive any exemptions, deductions, etc. which you could be entitled to.

As referenced, you should respond to the CP88 by the deadline provided. If the notice is accurate, once your returns are filed you may have a balance due even after the IRS applies your refund to that tax year(s). Bear in mind, if you have a balance due this will result in a back-tax liability that will have accrued interest and penalties for the tax year(s) in which said balance due is associated with.

Need help with an IRS letter or notice? The qualified team of professionals at The W Tax Group will help you get the answers you need. Call (877) 500-4930 to get the answers you need.

IRS CP 90

The IRS CP90 is a serious notice which makes it imperative you respond to it immediately. This notice is sent after the IRS has sent you multiple other notices seeking payment for your back taxes. The CP90 notifies you of the IRS intent to levy certain assets. These assets can include but are not limited to your social security benefits, wages and bank account.

The CP90 entitles you to a collection due process hearing (CDP). If you request the (CDP) it has to be postmarked by the date indicated in the paragraph on the notice referencing your right to request a CDP. That will almost always be 30 days. Requesting a hearing will usually stop the enforcement of the levy leaving the IRS unable to seize your assets until after the hearing and the appeals office has made a determination regarding your situation.

If you disagree with the notice and refute the liability the IRS claims is owed, you should call the IRS upon receipt of the notice with your account information readily available and request a (CDP). You may want to contact a tax attorney to talk to the IRS on your behalf due to the seriousness of the notice.

If you agree with the notice, however can’t pay the tax assessed you should call the IRS and try to work out other alternatives of payment. These alternatives can include an Installment Agreement, Offer in Compromise or Currently Non-Collectable.

To summarize you will want to respond to the CP90 immediately. Ignoring it can lead to punitive action by the IRS. In addition, the unpaid tax liability will continue to accrue interest and penalties.

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