When you owe the IRS, you’ll receive a number of notices. Each of these notices provides you with information including where you are at in the collection process, the risks you face, but also some include opportunities and rights that give you an opportunity to resolve your IRS problem more effectively.
Unfortunately, many taxpayers who owe the IRS don’t understand the notices or even read them. Many taxpayers that come to me with IRS problems, drop unopened IRS correspondence on my desk. Most who do this simply are afraid to open the notices and don’t want to get bad news. 0That can get them in a lot of trouble and sometimes create missed opportunities. I don’t want you to do that.
Let’s discuss the notices you’ll receive when you owe the IRS, along with some of the risks and opportunities, that each notice brings you.
What Notices Will I Receive?
Along the collection process, you will receive a number of notices that include:
- CP 14 – This notice lets you know that the tax amount has been assessed against you, the amount due, what you owe for, and how to pay the amount due. This is an ideal time to get on a plan to resolve your issue and minimize risk of penalties, levies and liens.
- CP 501/CP503 – These are considered to be “Reminder Notices”. While still written in a reasonable tone, the situation is getting more serious. This is still a good time to get a plan in place.
- CP 504 – If the taxpayer still does not address the tax issue, within 30 to 45 days, they will normally receive a CP 504. The CP504 gives the IRS the right to file a Federal Tax Lien against the taxpayer and/or levy a state tax refund if not dealt with within the 30 days permitted on the notice. You need to deal with the problem by the time it gets to this level.
- LT 11, Letter 1058, or CP90 – The “Final Notice” of intent to levy. Failure to respond to these notices within 30 days can result in a bank account levy, wage, social security garnishment, or Accounts Receivable Levies (for a business). If you get this notice, you need to respond as quickly as possible to prevent levies and/or garnishments. This notice also gives you an opportunity to invoke your CDP rights. Your CDP rights can be very powerful, so if you don’t understand what your CDP rights are, contact a professional who is a tax problem resolution specialist.
Do you Need Professional Help?
Many taxpayers want to address the issues but don’t know where to start or are intimidated by the IRS. If that’s you, contact a competent tax resolution group like our firm. We help taxpayers address IRS issues every day by helping them find the best solution for their situation, contacting the IRS directly on their behalf, and protecting our client’s rights. We help taxpayers either with our full representation program, or with our Do It Yourself (DIY) program, where they take the lead but where we are available to guide them along the process. If you need professional help, give me a call at (972) 821-1991 or set up an appointment directly on my calendar at https://meetme.so/BobJablonsky. To learn more about us, visit our website at https://jablonskyandassociates.com/.