Responding to IRS Notices – What exactly does it mean?

The IRS’s computer system generates numerous notices. When you receive one of these notices, your first thought would be to panic, especially if you know you have IRS problems. If you follow the steps outlined below, IRS notices can be resolved quickly.

• Understand the notice. Read it and re-read it until you understand what the notice says. Often times the IRS is just requesting additional information or is letting you know about a discrepancy on your tax return. All notices have a code containing the letters “CP” with a number. You can find a detailed explanation of the purpose of your specific notice by entering the code on the IRS website.
• Call the IRS. The notice will indicate the phone number and IRS agent’s name who sent it. Use this information to ask for an explanation of the notice and ways you can resolve the matter.
• Read and follow the directions. The notice will contain specific information regarding what is needed, deadline for said item, whose signatures are needed on the forms, and other pertinent information. Do not set it aside to do later. Prompt response will only work in your favor.
• Contact a tax professional. If you are unable to clarify what the IRS notice pertains to, contact a tax professional. An experienced professional has probably handled this situation in the past and can help you take care of the matter in a timely manner.
• Mail your response using certified mail. The IRS receives millions of pieces of correspondence in a month. Using certified mail with return receipt requested enables you to know that the IRS actually received your response.

It is also important to note that you should make copies of all your correspondence with the IRS for your records. To ensure accurate records, keep copies of the original letter, your response with documentation requested, and any postal receipts.

Some of the most common IRS notices include:

CP 10 – Changes to Tax Return, Reduced Amount Applied to Next Year’s Estimated Tax
CP 11 – Changes to Tax Return, Balance Due
CP 12 – Changes to Tax Return, Overpayment
CP 13 – Changes to Tax Return, No Refund and No Balance Due
CP 14 – Balance Due
CP 23 – Estimated Tax Discrepancy, Balance Due
CP 54B, E, G, Q – Problem With Name and Identifying Number
CP 57 – Notice of Insufficient Funds
CP 501 – Reminder – Balance Due
CP 2000 – We Are Proposing Changes to Your Tax Return

Contact our office for help solving your IRS problems. Our knowledgeable staff will be able to answer your questions and assist you with your IRS correspondence. Whether you need an Naples Tax Attorney or someone who can represent you in Alaska, give us a call today.

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