Have you received a letter or notice from the IRS? As you probably already know, these letters and notices are sometimes hard to understand and contain very short response deadlines, even as short as one day. If you’re late in responding, the consequences can be devastating. For instance, you might lose your right to contest the IRS’s action. Or worse – lose your home.
If there is an IRS employee who is specifically tasked with handling your file, you will be informed of his or her name, employee type and what the individual is capable of doing to you.
IRS notices and letters involve some of the following tax problems:
Delinquent tax returns and late tax payments
Formal notice of taxes you owe (Statutory Notice of Deficiency)
IRS Lien (Notice of Federal Tax Lien)
Seizure and Sale of your assets (Notice of Intent to Levy)
Delinquent tax returns and late tax payments– The longer you wait to file your tax returns and pay your taxes, the more serious your IRS problem becomes. The resulting penalties and interest increase each day and your initial tax debt could triple within a short period of time.
Statutory Notice of Deficiency– This is a formal document issued by the IRS that states how much you owe Uncle Sam. It gives you a limited time to respond. If you miss the deadline, you could lose your right to contest the assessed tax liability.
IRS Liens– When the IRS files a lien, it hurts your credit and is a negative mark against your real estate or business.
IRS Levy– The one notice that you should never ignore is the IRS’s Notice of Intent to Levy. If you don’t react properly to this notice, the IRS collections team could seize your wages, bank account, automobile or your home. This is potentially the IRS’s most powerful tool, and they’re not afraid to use it.
JG Associates is ready to bring its extensive IRS tax relief experience to aggressively defend you before the IRS and resolve your tax dispute.
You have rights and options!
JG Associates can:
Prepare all current and past due tax returns and contest the IRS’s late filing and late payment penalties (Abatement of Penalties)
Contest the IRS’s tax assessment (Reduce or eliminate taxes due)
Have the lien lifted
Stop the wage or other levy
Permanently reduce your tax debt using IRS’s Offer In Compromise Program
Understanding Your Notice or Letter
Use the following chart to find your letter or notice. The description will give you an idea of the IRS’s intentions.
IRS Notice
Special
Description
CP02H
You owe a balance due as a result of amending your tax return to show receipt of a grant received as a result of Hurricane Katrina, Rita or Wilma.
CP03A
You received a tax credit (called the First-Time Homebuyer Credit) for a home you purchased. This notice informs you on how to repay it.
CP03B
You received a tax credit (called the First-Time Homebuyer Credit) for a home you purchased. This notice informs you that you don’t have to repay the credit as long as the home remains your main home for at least three years after you purchase it. It also explains situations where a home stops being a main home.
CP08
You may qualify for the Additional Child Tax Credit and be entitled to some additional money.
CP10
We made a change(s) to your return because we believe there’s a miscalculation. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year.
CP10A
We made a change(s) to your return because we believe there’s a miscalculation involving your Earned Income Credit. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year.
CP11
We made changes to your return because we believe there’s a miscalculation. You owe money on your taxes as a result of these changes.
CP11A
We made changes to your return because we believe there’s a miscalculation involving your Earned Income Credit. You owe money on your taxes as a result of these changes.
CP11M
We made changes to your return involving the Making Work Pay and Government Retiree Credit. You owe money on your taxes as a result of these changes.
CP 12
Changes to Tax Return, Overpayment
CP 14
Balance Due
CP21A
We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s).
CP21B
We made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice.
CP21C
We made the change(s) you requested to your tax return for the tax year specified on the notice. You’re not due a refund nor do you owe any additional amount. Your account balance for this tax form and tax year is zero.
CP21E
As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes.
CP21I
We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes.
CP22A
We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s).
CP22E
As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes.
CP22I
We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes.
CP 23
Estimated Tax Discrepancy, Balance Due
CP31
Your refund check was returned to us, so you need to update your address.
CP45
We were unable to apply your overpayment to your estimated tax as you requested.
CP 49
Overpaid Tax Applied to Other Taxes You Owe
CP53
We can’t provide your refund through direct deposit, so we’re sending you a refund check by mail.
CP 57
Notice of Insufficient Funds
CP 59
Notice to Request a Tax Return
CP 88
Delinquent Return Refund Hold
CP 90
Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
CP 91
Final Notice Before Levy on Social Security Benefits
CP120
You need to send us documentation of your tax-exempt status.
CP130
Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax.
CP139
Your tax return filing requirements may have changed: You may no longer need to file Form 941 and Form 940.
CP152
We have received your return.
CP153
We can’t provide you with your refund through a direct deposit, so we’re sending you a refund check/credit payment by mail.
CP 161
Request for Payment or Notice of Unpaid Balance, Balance Due
CP166
We were unable to process your monthly payment because there were insufficient funds in your bank account.
CP178
Your tax return filing requirements may have changed: You may no longer owe excise tax.
CP231
Your refund or credit payment was returned to us and we need you to update your current address.
CP276A
We didn’t receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time.
CP276B
We didn’t receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time.
CP 297
Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
CP 297A
Notice of Levy and Notice of Your Right to a Hearing
CP 298
Final Notice Before Levy on Social Security Benefits
CP 501
Reminder Notice – Balance Due
CP 503
Second Request Notice – Balance Due
CP 504
Final Notice – Balance Due
CP 521
Installment Agreement Reminder Notice
CP 523
Notice of Default on Installment Agreement
CP 2000
Notice of Proposed Adjustment for Underpayment/Overpayment
Letter 0484C
Collection Information Statement Requested (Form 433F/433D); Inability to Pay/Transfer
Letter 0549C
Balance Due on Account is Paid
Letter 0681C
Proposal to Pay Accepted
Letter 0757C
Installment Privilege Terminated
Letter 1058
Final Notice prior to levy; your right to a hearing
LT 11
Final Notice prior to levy; your right to a hearing
LT 16
Please call us about your overdue taxes or tax return.
Letter 1615
Mail us your overdue tax returns.
Letter 1731
Please help us locate a taxpayer.
Letter 1737
Please complete and site Form 433F, Collection Information Statement.
LT 18
Mail us your overdue tax returns.
Letter 1961C
Installment Agreement for Direct Debit 433-G
Letter 1962C
Installment Agreement Reply to Taxpayer
Letter 2050
Please call us about your overdue taxes or tax return.