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You Received a Notice From The IRS – What Does It Mean?

Do not panic at first. Make sure to contact Omni Tax Help to help you understand what your notice means. When the IRS is looking to contact you, they will send a notice or letter to your last known address on file. If you have not filed a tax return in quite some time, then the notice may go to the last address listed on your tax return. 

Make sure that you update your information with the IRS each year. Any letter from the IRS may be a frightening letter to receive but with the right help it does not have to ruin your life. Sending out notice is the most common way for the IRS to contact you. They will rarely call you by phone. The IRS will never try to contact you via email or on any type of social media program either.

IRS Notice
IRS Notice

Each Notice Will Address A Specific Issue On Your Account

Each notice will address a specific issue on your account. Some of the most common issues are related to your federal tax return or changes that have taken place on your account. A notice may also request or demand full payment of the balance due or to ask you to provide more information to a previous request that was made. Included in the notice will be a few different ways in which you can respond. Most of the time you will be able to respond by mail rather than making an in-person visit or having to make a phone call to them.

If you do need to call the IRS, the notice you receive will contain a specific letter number and contact phone number. The specific letter number can be found in the bottom or top right-hand corner of the notice. This number will be used as a reference for your account. Make sure to keep a copy of all notices that you have received, whether past or current, when placing a call to the IRS. Having an original copy of your most recent tax return can be a useful reference as well.

If you have received a notice from the IRS,
do not ignore it.

The reason is for the IRS to reach out to you will be addressed in the notice. Read the notice carefully and take the steps needed to correct the issue. If you are unaware of what the notice means then you should contact a tax attorney, enrolled agent or other tax experts as soon as you can. A notice will be sent when the IRS is trying to clarify an issue at hand. Most of the time the notice can contain a question about a tax return that you just filed. It can have info saying that you are due a bigger or smaller refund than expected. The notice can also make you aware of any delays that may have happened in the processing of your original return. 

The IRS may also be looking to verify your identity. When there is a case of identity theft, you will receive a notice labeled, CP01A, with a specific pin and phone number that you must use. The specific PIN is also known as an Identity Protection Pin (IP PIN). This IP Pin will consist of a six-digit number that will be given exclusively to you. When you file a tax return in the future you will be required to enter that pin into your tax return before submitting. By issuing an IP Pin, it helps prevent the abuse of a taxpayer’s social security number on a fake federal income tax return. This IP PIN will help the IRS verify that you are the correct person filing the tax return.

Final Notice

When The IRS Has Sent Out a Series of Five Notices

Then and only then can they move forward with issuing a final notice. A final notice will be sent out giving the IRS the legal right to a levy. The more important, final notices will include a deadline date that you must respond by. Generally, a response time can vary from 30 days to 60 days, sometimes, even more, depending on the issue being addressed. Some examples of a final notice are a CP504, LT11, CP90 or CP91. A CP504 is the final notice making you aware that you have an unpaid tax due on your account. If you do not pay this amount as soon as possible, the IRS will levy your state income tax refund and apply it to the past due to tax debt. Generally, you have 30 days from the date of this notice to make arrangements for the past due amounts. An LT11 notice means that the IRS plans to levy your property. The IRS will give you 30 days to respond to the LT11.
IRS Notice

A CP90 is a formal letter that the IRS will seize your assets if you do not pay. You will be given 30 days from the date of this notice to respond before your income, retirement benefits, bank accounts or other assets are at risk. The IRS can even levy 15% of your social security income. If this is the case and that is your only type of income, then it will be listed in a CP91 letter. You must be aware of the deadlines included in the notices to avoid aggressive collection actions such as liens or levies taking place on your account. Responding on time can also reduce the amount of interest and penalties that will be added to your account. A timely response can also ensure your Appeal rights to any decision made by the IRS. If you disagree with the information that is listed on the final notices discussed above, file an Appeal.

IRS Notice

How To Request an Appeal

To begin the process of an Appeal you must submit a Form 12153, Request for a Collections Due Process Hearing. A Form 12153 is included with most of the final notices issued to you. Once you apply for a Collection Due Process Hearing, your account will be taken out of the collection inventory and get assigned to a specific person in the Appeals department. If you strongly disagree with the information listed in your notice, then filing an Appeal would be the easiest route to go. A Collection Due Process hearing will make sure that your case will be heard by a specific agent. This can be a limitless way to resolve the levy proposed. This is also easier than calling or visiting an IRS office and having to wait long periods just to get someone to hear your side of the story. Once your account is in an appeals status, it can take anywhere from three to six months to be resolved.

Although most of the notices issued by the IRS can be terrifying, there are numerous ones that will be sent out to advise you of the status that your account is in. An IRS letter 2273C can advise you that your Installment Agreement request has been accepted. This letter will contain important terms and conditions of your agreement that must be followed. If a request for an Installment Agreement was made and additional info is needed to approve the request, the IRS will issue out a 2272C letter. This notice will also be sent out when the Installment Agreement request has been denied. There is usually a 10-day deadline listed on the notice for you to respond. If the deadline date passes and no contact is made, then the IRS will continue with enforcement action such as liens and levies on your account. If your account has been placed in a currently not collectible status, the IRS will issue a CP71, Annual Balance Due reminder notice. This notice will detail out the balances that are still on your account while in a currently non-collectible status. The CP71 is more of an informative notice. There will not be a deadline included in this notice.

Our Experts At Omni Tax Help will Support You

When the IRS sends you a letter it can be a lot to deal with if you are uneducated on the tax laws and what your rights are pertaining to the type of notice you received. You are not alone. Omni Tax Help specializes in addressing all issues with the IRS in a timely manner. Whether you are at risk of losing your home or having your income taken from you, Omni Tax Help can work with the IRS to fight for you to keep them. Do not ignore the notice that you received. If you let your tax problem get out of control, it will take twice the amount of time and money to correct it. Make sure that you are paying balances due as they are brought to your attention.
IRS Notice

If you are unable to pay the full balance due, then confirm that an arrangement is in place. Omni Tax Help is here to guide you in resolving your past-due federal tax liability and make sure that you are educated on what needs to be done so that you will not owe money to the IRS or State government in the future.

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