Help to Stop IRS Letters and IRS Notices

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

• 1099 Tax Relief
• Bank Levy
• Business / Payroll Taxes
• IRS Back Tax Returns
• Penalties and Interest
• Revenue Officer
• Tax Lien
• Wage Garnishments