You’ve received a notice from the IRS in your mailbox. What is it about? Do I owe them money? Do I have IRS problems? Now is not the time to panic. Your IRS problems can be solved. You’ll know that notices can be easily handled.
Millions of notices are mailed by the IRS each year. These could be anything from default notices to corrections on tax returns. Every notice is specific to an issue and has the details on how to resolve the matter.
The top of page one and the left side of the tear-off stub of the notice has the specific collection process or CP number assigned to it.
The most common CP (collection process) numbers are:
- CP12 – Overpayment of at least $1 (Math error)
- CP14 – Balance due
- CP49 – Overpaid tax (applied to other taxes you need to pay)
- CP90 – Final notice ? Notice of intent to levy
- CP91 – Final notice before levy on Social Security benefits
- CP161 – Balance due (No math error)
- CP297 – Final notice ? Notice of your right to a hearing (CP90 & CP297 are simultaneously sent)
- CP298 – Final notice of intent to levy on Social Security benefits (CP91 & CP298 are simultaneously sent)
- CP501 – Balance due reminder notice
- CP504 – Balance due urgent notice
- CP523 – Notice of default on installation agreement
- CP2000 – Notice of proposed adjustment for under/overpayment
Ensure that your tax debt doesn’t accrue penalties and interest by sending your payment promptly if you agree with the notice. If there no tax owed, there’s no need to respond.
If you find the notice disagreeable, contact the IRS as soon as possible and state your reasons. The notice will include a contact phone number. A written explanation may also be sent but in a prompt manner. When writing, include information and documentation showing the reason why you do not agree with the notice. Always attach the tear-off portion of the notice. Be patient as the IRS may take up to thirty days to respond.
Don’t be alarmed if the IRS responds with another notice asking for more information and just follow additional instructions.
Keep copies of correspondences with the IRS for record-keeping purposes.
