With so many scams around these days, it’s important for people to understand that the IRS almost always contacts people through traditional mail rather than over the phone or through email, and never via direct message online. People tend to panic when they receive a letter from the IRS, but often these letters are often simply sent to update someone about their accounts, where they can find resources, and other mundane notices.
This does not, however, mean that you should ignore a letter from the IRS. Sometimes, notices you may receive are letting you know that there is a problem with your tax returns, that you owe back taxes or penalties, or that you are subject to collections on your debts. Thus, these letters can be scary, confusing, and stressful to receive.
The first thing to do is look for the section of the letter that instructs your next steps to take. The second thing to do is immediately seek help from a tax professional like Instant Tax Solutions. Our experienced Houston tax relief lawyers are familiar with the various types of letters, demands, and notices the IRS issues, and we know how to respond.
If you feel confused and scared about an IRS letter, you are not alone. Thousands of people like you get such letters every year. That is why we are here. Just reach out to us for a free, no-obligation consultation and let us help you understand where to go next and even resolve the situation with the IRS to get you back on track. Just call us today at (888) 921-3781 or reach out online to schedule your appointment today.
Houston Responding to IRS Notices and Letters Help
Getting a letter from the IRS is understandably scary, but Instant Tax Solutions can help you determine whether the letter is a mundane notice or something to which you need to respond. We will then help you to dig deeper, if need be, to see where you may have an issue with your finances, what your options may be for relief, and how you can get your financial future secure once more.
You may be surprised how often the IRS makes mistakes in their tax assessments, how often people can get penalties and fees removed, and even the range of options for reducing the amount you may owe. Our tax relief services have helped tens of thousands of people for years to find the path to financial solvency and restore their standing with the IRS, while not creating an undue burden on their finances. We are ready to help you.
If you are not sure what to do next after receiving an IRS tax letter or notice, we will be your dedicated partners to stand up for your rights. We can even help you create a financial plan for the future, and there is no cost for the initial consultation.
What to Do With Houston IRS Tax Letters & Notices
The first thing to keep in mind when you get IRS tax letters & notices is: don’t panic. Take a breath, and carefully read what the letter says. After you understand the letter’s intent, you can take the next steps. These include:
Verify the letter
Respond if necessary
Know what action to take
File an appeal if you can
The process can be confusing and scary. If you need help, Instant Tax Solutions is here to help.
Always Verify the Letter
The first, and most important thing to do is to verify that the letter is indeed from the IRS. Today’s world is full of scammers who will use any scare tactics they can to get you to give them money. Unfortunately, it is difficult at best to get money back if you fall prey to a scam.
Verifying a letter’s authenticity is as simple as calling the IRS or logging into your account at their website, if you have one. Do not, however, use phone numbers or links contained within the letter. If it is a scam, these contact methods will put you in touch with the scammer. Look to the IRS website at irs.gov to get in touch with the agency.
In addition, never provide information over the phone or through an unverified source. Always use official information listed on the irs.gov website. If you are not sure about the letter’s authenticity, Instant Tax Solutions can help you to verify.
When Responding to IRS Letters and Notices Is Important
If you need to respond to an IRS letter, the letter itself will inform you of the need to respond, or of your right to respond. Read the letter in detail from start to finish. Never put off reading an IRS letter because you only have a limited time to respond when necessary. It will give you the options to pursue action or seek further information. Once again, if you are not sure, our tax professionals can help.
Remember, these letters are typically time-sensitive. You only have 30 days to respond after you receive a letter from the IRS. If you miss this deadline, you could be subject to further penalties or actions, and you may lose important rights to challenge or appeal any threats of action within the notice.
What Letters Require Action?
The IRS has many different types of letters. Many are simple informational notices. If a letter requires action, it will clearly state what you need to do and what the timeframe is for taking such an action. The letter should also give you information on how you can respond. Some methods for responding to a letter or otherwise taking a required action include U.S. Postal mail, FAX, or even online through the agency’s Documentation Upload Tool. The latter of these is only available if your letter includes an access code.
IRS Letters & Notices Guide
There are a dizzying variety of IRS tax letters and notices. Just a few of the reasons that the IRS may reach out to you include: notification of a tax discrepancy, an adjustment to a tax refund, a request for additional information on your tax filing, a request for identity verification, an acknowledgment of an amended return, a reminder of an installment payment due, or a delay in your processing.
Less commonly, the IRS may reach out regarding payments to your account, to let you know about new tax documents, to warn you that you have not responded to a prior letter, to let you know about imminent collections actions, a notice or report of an audit on your accounts, a notice about potential identity theft, and a wide range of other notices and confirmations in response to communications you send to them.
One of the more important notices you may receive notes that you have the right to appeal or dispute an action the IRS has taken. Such notices usually contain instructions on how to go about such a dispute.
Letters That Offer the Right to Appeal an IRS Decision or Action
Many letters that involve decisions or assessments the IRS has made about your account may be appealed. A few of the more common letters and notices in this category include:
Letters 11 and 73 (Notice of and Intent to Levy): These letters are a notice of the IRS intent to Levy — Letter 73 will be sent first, and Letter 11 is a Final Notice. Both offer you the opportunity for a hearing or appeal. Alongside these letters are several notices including CP90 and CP297 — Final Notice of Intent to Levy, CP 92; and CP242 — Notice of Levy on State Tax Refunds.
Letter 525 — General 30 Day Letter: This letter simply lets you know that adjustments have been made to your tax return and gives you 30 days to agree or appeal.
Letter 531 (Notice of Deficiency): Letter 531 lets you know that you owe additional tax for prior years which you are late in paying.
Many other types of letters allow you to appeal an action or decision by the IRS. If your letter offers such an opportunity, you should reach out to Instant Tax Services for advice right away.
When to Seek Help for IRS Tax Letters and Notices
It is always a good idea to seek help from knowledgeable and expert tax professionals if you receive a letter or notice that requires action. That is, if the letter is anything beyond a simple update — and especially if it involves your personal taxes from a notice of back taxes owed to an audit notice — you should seek professional help. You almost always have options, and the right tax service, like Instant Tax Solutions, is here to help with your Houston IRS Notices and Letters problems.
Remember that, for the most part, all the IRS wants is the money they feel you owe. They would much rather work out a payment arrangement with you than take your property. Many collection efforts are an attempt to frighten you into paying. Our experienced professionals can give you the tools you need to get back on track and get those payments current once more.
Contact Instant Tax Solutions
If you have received IRS notices and letters and are not sure what to do next, we are here to help. Reach out to Instant Tax Solutions today.
We have offered to respond to IRS notices and letters to help tens of thousands of people just like you over the years, and we are ready to assist you. Call us today at (888) 921-3781 or contact us online for your free, no-obligation consultation.
Notice CP 11: Changes to Tax Return, Balance Due
The IRS will send a taxpayer the CP 11 notice when there are changes made to a tax return or in the event a balance is due. It will clearly show the taxpayer the changes that are being made to 1040 Individual Income Tax Form. The changes that were made to your tax return resulted in a balance being due, and the purpose of this form is to explain how and why the changes were made.
Anytime the IRS makes any type of change to a tax form, a notice showing indicating “Math Error” is sent to the taxpayer. There is also an account statement enclosed which explains in detail how your taxes were affected by said changes. There is a three-digit code that is also assigned to each description.
The stub portion on the last page of the notice lists the Math Error codes, in the format of “aaabbbccc”. The first code being denoted by “aaa”, second one by “bbb”, and third code is listed as “ccc”. If there are more than three changes described on the notice, then only the first three will print on the stub. Now that you have a basic understanding of how codes work, you can look them up on the IRS website.
Some of the things that will also be explained on the notice are as follows:
Why the notice is being sent
Why the changes are being made
What to do in the event you agree with said changes
What to do if you do not agree with said changes
Some of the other paperwork and information that may be sent with a CP11 IRS Tax Notice:
A Form 2210:Underpayment of Estimated Tax by Individuals, Estates and Trusts
A Form 9465: Installment Agreement Request Form
Notice 1212:Automated Telephone Service
Notice 746: Information About Your Notice, Penalty and Interest
Publication 1: Your Rights As A Taxpayer
All of this information must be filled out accurately therefore, it is advisable that you contact a qualified company like us to handle this situation. We have dealt with these types of notices before and can guide you in the right direction.
CP 14: Changes to Tax Return, Balance Due
The reason a taxpayer would receive a CP14 IRS tax notice is not because of a mathematical error. This form shows you the amount the IRS has determined a taxpayer has underpaid. The middle of the form explains the amount you reported in taxes, the IRS tax credits applied and the amount of underpayment in question.
Check for Reporting Accuracy
The first thing that should be done is checking the form for reporting accuracy. Often times a misapplied payment is the result of there being a balance due. If the amount of tax you paid differs from the ones the IRS shows, they will need information from you to research the discrepancy. Once the payment is discovered it will be applied and the penalties, fines and interest will be removed from your account.
If your records concur with the IRS records, then you are responsible for paying the amount due on the day it is due. If you are not able to pay the amount in full by the due date listed, you can expect the IRS to assess penalties and interest to your account. Then a viable alternative would be to request an IRS installment agreement, which will allow you to pay the debt back in smaller amounts over a period of time.
There are many reasons why an underpayment may have been made. If you received this notice because of a missing payment in question, have your registered agent contact the IRS and provide them with payment verification for immediate resolution. Make the representative aware of the amount of the missing payment, and give them time to research their records. If they are unable to locate the missing payment information in a timely manner, they may need the encoding information from the back of your check, if this is the method you used to pay the account. They will make a note of the relevant information and cease further collection activity until the situation is resolved. In many cases, it is best to furnish them with a clear photocopy of the check or money order you used to pay this account with.
Other Reasons You May Have Received This
You may have received a notice because the amount on your payment does not match the amount shown on the notice. In this circumstance again, it is best to have your tax lawyer contact the IRS and furnish them with a copy of the canceled check or a copy of any information or documentation, that can be used to back up proof of payment.
If you received a notice because of an amended return showing a decrease of tax debt, then your tax professional will again need to contact the IRS for confirmation that this return was processed after the notice was issued.
If your notice shows a difference between the total tax amount than the tax that was reported, again this is a situation that requires a professional’s contact with the IRS. The government has pre-printed address labels that identify a code. This code shows the tax period for the particular return in question. If you used a previous photocopy of the return in question, it may have been the result of a clerical error on the part of the government’s systems.
If you receive any notices after paying off your tax debt in full, simply having your tax attorney call the IRS should work out this problem. Most times an issue with a CP14 notice can be resolved with minimal headache. The easiest way to resolve any problems is to have your representative call the revenue officer and verify information and your account should be taken care of.
CP 23 Notice: Changes Made to Estimated Total Tax
When a taxpayer receives a CP 23 Notice in the mail, it is to make them aware of a situation in which the amount of Estimated Tax Payments being reported on their tax return differs from IRS records. This notice may also show the taxpayer that the government has made certain changes to their account to reflect this problem. Because there is a difference or discrepancy in the amounts, the causes there to be a balance due on the taxpayers account.
There are two pages included with this notice that will contain the following information on Page 1:
Income
Adjusted Gross Income on the return
Taxable Income
Payments & Credits
Withheld Tax
Estimated Tax payments
Credits
Payments
Total of payments & credits
Tax
Total amount of tax on return
Underpaid taxes plus:
Penalty
Interest
Amount owed
Subtract payments not included
You would then owe the adjusted amount
If you contest the adjustments then you will need to have your representative contact the government to dispute the amount. Provide them with a copy of the tax return in question, along with any paperwork or receipts that show you paid this debt. This information is vital if the IRS is going to prove that any payment made, that was not applied to your account.
The second page of the notice includes explanations of change, a table showing a statement of your estimated tax account, and estimate tax filers notes. If you keep accurate records and retain the services of a tax attorney, you should be able to find a quick and easy resolution to any problems you may be having.
CP 501 Notice: Reminder of Balance Due
The CP 501 letter is sent to remind a taxpayer that there is a balance due on their tax account. This is a one page, secondary notice that is sent after previous notices have been ignored. If the outstanding tax is not paid within 10 days, the IRS can take adverse collection actions against you. This notice is sent on an account that has had penalties and interest assessed, there is a two-digit code to identify the explanation.
The last page of this notice contains alpha codes such as “aa”, “bb”, “cc”, “dd”, “ee”, “ff”, “gg”, or “hh”. The “aa” is identified as the first code, the “bb” is the second and so on and so on. Only codes for the first eight explanations are printed on this stub.
There are also enclosures and forms sent with this notice:
Notice 1219B:
Notice of Potential Third Party Contact-this means that the IRS can speak to others in regards to your tax debt
Notice 1219B (SP):
Avis De Possible Communication con Teresa(s) Persona(s)-Insert for Spanish speaking taxpayers
Notice 609:
Privacy Act Notice
Notice 746:
Information about Your Notice, Penalties and Interest
Publication 594:
What You Should Know About The Collection Process
If you get this notice in the mail, it is to tell you that the IRS has determined you owe money. If you have previously paid the notice, then you need to call the IRS to confirm payment was received. However, if you are unable to pay the notice in full or have questions, please refer to your tax attorney for further assistance.
CP 503 Notice (Second Notice)
The CP 503 (Second Notice) is a one page notice that is sent to inform you that you still have an outstanding balance on your account. The form is sent because the IRS has not received contact from any of the other notices that were previously sent.
This form will contain the word, IMPORTANT! It requests that immediate action be taken in regards to your outstanding tax balance. It will also explain how if you do not pay heed to this notice, you are facing penalties and interest that will only compound and get worse. You are legally required to pay the entire balance due within 10 days from the receipt of the notice.
If you had previously made this payment, do not simply disregard this notice. You still need to contact the IRS and verify whether or not they have received the payment in question. The information contained on this form will include your account summary which shows: outstanding balance, tax period date, form number, penalty, interest and date last payment was received. If you have any questions about this form, please contact your tax lawyer for resolution.
CP 504: Final Notice, Balance Due
A CP 504 notice is sent with a sense of urgency to taxpayers who owe money to the IRS. This form is sent when no payments have been made and this is the final notice that is sent before a levy will be obtained. This notice is one page in its entirety, and will explain your account information in detail.
Form 504 is a one page notice and contains the following information:
A two-digit code that explains the assessments
A tear off stub on the last page of notice with a code of “aa”, “bb”, “cc”, “dd”, “ee”, “ff”, etc.
There will be no more than eight codes assigned to this stub
This form is telling you as a taxpayer, that the government intends to file a levy against any anticipated tax refund, to collect a past due balance. The IRS will also begin to investigate your other assets as well. They may also file a Federal Tax Lien as a result of the past due amount owed. You can either pay the amount shown on the notice or enter into an IRS installment payment plan.
We can make arrangements and contact the government on your behalf to work out the best solution for you and to stop any collection actions that may be going on.
CP 521: Installment Agreement Reminder Notice
This CP 521 notice is one page in total and is sent to remind the taxpayer that a payment is due on their installment agreement (as detailed here). IRS interest and penalties will accrue and are calculated to the due date of the notice. The interest will continue to build until the balance is paid in full.
A two-digit code is assigned to the notice in the format of “aa”, “bb”, “cc”, “dd”, “ee”, “ff”, etc. and each code represents a penalty. There will be a maximum of eight codes only shown on the account. Once you have figured out which codes are on your notice, you can begin to understand what they stand for.
CP 523: Notice of Intent to Levy, You Defaulted on Your Installment Agreement
A CP 523 Notice is forwarded to the taxpayer to show that they have defaulted on previously arranged installment agreement. This means that the person did not abide by the terms of their installment agreement and they are now in default status. A CP 523 form shows the reason for default, intent to levy assets or income and the rights the taxpayer has to prevent collection action from being taken.
The standard stub issued contains alpha characters to represent the various tax codes. They are shown in the format of “aa”, “bb”, “cc”, “dd”, “ee”, ff, “gg”, and so on. The first code is represented as an “aa”, and the preceding codes are listed in order. No more than eight codes will be listed on one stub.
The IRS also encloses the following forms in this notice:
Notice 1219B: Notice of Potential Third Party Contact-the IRS intends to speak to others about your tax debt
Notice 1219B (SP): Avis De Possible Communication con Teresa (s) Persona (s)-For Spanish speaking taxpayers
Notice 609: Privacy Act Notice
Notice 746: Information About Your Notice, Penalty and Interest
Publication 594: What You Should Know About The Collection Process
They will only send this notice in three instances, you missed a payment, you have a new balance or you failed to file a tax return. You have 30 days from the date of the notice to respond. This is an official cancellation of your payment plan agreement.
CP 90: Final Notice of Intent to Levy & Notice of Your Right to a Hearing
A CP 90 Notice is sent to a taxpayer to inform them of an intent to levy on your assets. If there is a balance due on your account, they have the right to pursue collection actions against you. If you had previously received a notice showing a balance due, and did not pay the balance, then the balance is still due. The CP 90 Notice is then forwarded and a taxpayer has a a 30 day window within which to respond.
The CP 90 notice is two pages in total and contains information about how to go about contact an agent to pay off the balance, make payment arrangements,and what information you should enclose when sending correspondence or payment. Page number two will be a stub showing your form number, tax period, assessed balance information, statutory additions, paying late penalty, interest and the total amount you owe.
The following information is also enclosed with the two pages of the CP 90 Notice:
Form 12153: Request for a Collection Due Process Hearing
Publication 594: What You Should Know About The IRS Collection Process
Publication 1660: Collection Appeal Rights
They can levy any type of income or payments you receive such a contractor/vendor, social security benefits, salary, employee travel per idem money, property or rights to property, real estate, automobiles, bank accounts and any thing else you own or have financial interest in.
This type of levy gives the IRS rights to anything they need to make you pay your debt. If you receive this notice or have questions, concerns, have previously paid the notice, or wish to contest the notice, you need to contact us for further assistance.
CP 91 IRS Notice: Final Notice Before Levy of Social Security Benefits
This is a notice that entails information about the government filing a final notice before take your social security benefits. It is sent to taxpayers who owe an outstanding balance on back taxes. This is not the first one sent, and if the taxpayer has ignored previous notices this is the final one prior to action being taken. The form notifies the taxpayer that the amount is still outstanding and that up to 15% of social security benefits will be seized to secure payment. The taxpayer has 30 days to respond once this notice is sent.
There are two pages included in this notice. The first page contains information about account, your rights and their contact information. It tells you what to do if you can pay the amount in full and what to do if you are unable to pay the balance off. It also advises you that if you want a tax attorney or professional to represent you in this matter that you will need to file a Form 2848: Power of Attorney and Declaration of Representative.
Page two of the notice is your account information. It includes your account or form number, tax period, assessed balance, statutory additions, paying penalty late, interest and the total amount of tax owed. This is how the IRS will list information for all outstanding accounts.
There is also the following forms and information enclosed in this notice:
Publication 4134: Low Income Taxpayer Clinics for low-income taxpayers
Copy of notice
Envelop
If you have previously paid this balance and have proof, then you should contact the IRS as soon as possible. If you have questions about the balance, or need to have an installment agreement requested, your tax attorney can assist you with this information also.
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The IRS will send a taxpayer the 
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This is a notice that entails information about the government filing a final notice before take your social security benefits. It is sent to taxpayers who owe an outstanding balance on back taxes. This is not the first one sent, and if the taxpayer has ignored previous notices this is the final one prior to action being taken. The form notifies the taxpayer that the amount is still outstanding and that up to 15% of social security benefits will be seized to secure payment. The taxpayer has 30 days to respond once this notice is sent.
