218 IRS Most Popular Tax Notices and Letter IDs
It tough enough getting an IRS or state tax notice. But, understanding the notice can take phone calls and discussions with your tax preparer.
Is there something missing from my return? Why was there an additional tax liability? Why did the return not match the information that the IRS had on file? Not every question; but, these are just a few of the questions that taxpayers have for their tax preparers?
When it comes to IRS letters, every IRS letter has a Letter ID that normally begins with CP. From the letters, the IRS will inform taxpayers what changes were made and why there may be an additional tax liability in addition to the tax year and the due date for the information to be received or when a tax payment is due.
CP501 / CP502
IRS sends CP501 and CP502 to let taxpayers know they have a past due obligation.
IRS sends CP71C to let you know that you have overlooked a tax debt for several years.
IRS sends CP503 to inform the taxpayer that a tax payment is due in full within ten (10) days.
IRS sends CP504 to inform the taxpayer that this a last notice and they are preparing to garnish your wages and/or tax refund to pay towards your past due tax liability.
IRS sends CP521 to inform the taxpayer that they have defaulted on their installment agreement and that payment is due in full.
IRS sends CP521 to inform the taxpayer that they are in the process of garnishing and seizing assets and wages to pay towards the tax liability after the taxpayer broke the installment agreement.
CP90/CP297 (sent simultaneously)
These letters sent simultaneously (CP90/CP297) alerts the taxpayer to an impending garnishments and seizures including levies. The taxpayer may be given a thirty (30) day to pay the tax liability in full period.
With letter 3172, the letter informs the taxpayer that the IRS is moving forward with seizing property and assets to pay towards the taxpayer’s tax liability.
The IRS sends letter CP12 to inform the taxpayer that there changes to the tax return because of math miscalculations.
CP14 is used to inform the taxpayer that the taxpayer has an outstanding tax liability.
CP49 informs the taxpayer the that an overpayment was used to pay an outstanding tax liability.
CP91 / CP298 (sent simultaneously)
CP91 and CP298 are sent simultaneously to inform the taxpayer that the IRS is preparing to levy a garnishment against the taxpayer’s social security benefits.
CP161 is used to inform the taxpayer that there is a balance due and there was no math error.
CP501 is a remainder notice that informs the taxpayer of a balance due.
CP2000 is used to alert the taxpayer that the information on the tax return did not match the IRS’s information on file
When it comes to tax notices, it’s best to deal with the notices early before there are garnishments, asset seizures, and levies.
That’s why it is important to contact a tax professional should you have questions regarding the notice from either the state or IRS.
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