IRS Notices and Letters- What They Mean & What to Do About Them
So you received an IRS notice and are a bet scared by the tone? Don’t panic yet. Many of the notice sound harsh but can easy be resolved if you just know the proper steps. Below are some common notices and what they apply to and the appropriate solution. Remember that it is the IRS responsibility to notify you are your last know address. Therefore there may be previous notices that you missed. If the IRS sends it to your last known address and you do not receive the notice because you are no longer at that address, the Service has met it requirement for notice.
IRS Notices & Letters
CP 11 IRS Notice CP 11- Changes To Tax Return, Balance Due
IRS uses CP 11 notice to inform taxpayer of changes made to their tax return that has lead to a balance due. The IRS sends this as a first reminder of a balance due.
CP 22A IRS Notice CP 22A- Adjustment Notice- Balance Due
The CP 22A notice is sent to a taxpayer to notify you of an adjustment to the return that results in a balance due on your account.
CP 22E IRS Notice CP 22E- Examination Adjustment, Balance Due
IRS Sends IRS Notice CP 22E when they have made an adjustment to your return resulting in a balance of $5 or more.
CP 23 IRS Notice CP 23- Estimated Tax Payment Discrepancy- Balance Due
IRS used Notice CP 23 to inform you that they see a difference between the amount posted to your account and the amount of Estimated Tax Payments that were claimed on your tax return. Lastly, the IRS will notify you of the balance currently due.
CP 88..IRS Notice CP 88- Delinquent Return Hold
IRS used Notice CP 88 to inform you that a refund from a current or prior return is being held until you file all necessary the return(s) listed on the notice.
CP 90/CP 297/CP 297A..IRS Notice CP 90/297/297A- Notice of Levy And Right To A Hearing
The IRS uses CP 90/CP 297/CP297A to warn you of their intent to take money and assets. This could mean wages, commissions, Social Security benefits, or government retirement benefits and or seizure of assets such as real estate, bank accounts, car, and business assets.
CP 91/ CP 298..IRS Notice CP 91/298- Final Notice Before Levy of Social Security Benefits
IRS uses Notice CP 91 or CP 298 to inform you they plan to take 15% of your social security benefits due to an outstanding balance on your account.
CP 161 IRS Notice CP 161- Request For Payment Or Notice of Unpaid Balance
IRS uses CP 161 to remind you of a balance due and to provide you with information about credits applied to the return. Many people mistakenly believe this is an indication of a math error on the return; this is not correct.
CP 14 IRS Notice CP 14- Notice of Balance Due
IRS Notice CP 14 is sent to a taxpayer to show the outstanding Tax Liability for a specific year. It typically takes 60 days for the IRS to process your return and send you a notice of a balance due. Next The IRS will start a series of letters (CP 501, CP503 and CP504), as a reminder of the balance owed
CP 501 IRS Notice CP 501-Reminder Of Past Due Taxes
IRS uses CP 501 to remind taxpayer of past due taxes. This is the first in a series of notices (CP501, CP503, CP504) each become more threatening in its language. The last in the series is the CP 504- Notice of Intent To Levy. Next is the Letter 1058- Final Notice of Intent To Levy
CP 503 IRS Notice CP 503-Second Reminder Of Past Due Taxes
IRS uses CP 503 as a second reminder to taxpayers of past due taxes. This is the second in a series of notices (CP501, CP503, CP504) each become more threatening in its language. The last in the series is the CP 504- Notice of Intent To Levy. Next is the Letter 1058- Final Notice of Intent To Levy
CP 504 IRS Notice CP 504 Third and Final Reminder Of Past Due Taxes
The CP 504 is a final notice of a balance that is due on your account. This is the third in a series of notices (CP501, CP503, CP504) each become more threatening in its language. Next is the Letter 1058- Final Notice of Intent To Levy This notice will indicate that a levy will be issued against any state tax refunds. At this point the IRS will be search for other assets and income (wages, retirement, social security, bank accounts, etc.) from which to levy. It is very likely that a lien will also be filed, which will affect your credit.
LT11 or L1058 Letter 1058/LT 11-Final Notice of Intent to Levy
IRS uses Letter 1058 or L-1058 / LT 11 is a final (sent certified) notice letting you know that you still have a balance and if you do not resolve it they will attempt to levy your wages, bank account, and/or other assets within 30 days. This letter is more formal than other notices and will tell you that the IRS will also be searching for other assets you have that they can levy. Normally, a CP 504 precedes this letter.
CP 523 IRS Notice CP 523-Notice Of Default On An Installment Agreement
IRS uses CP 523 notice to inform you that they are terminating your installment agreement. Remember, when you setup an installment agreement with the IRS you promise to pay a particular amount of money every month, remain in compliance (file returns timely) and not increase the current balance. The Notice provide the reason of termination. Common reasons include: you missed a payment, you did not file a tax return, and/or you have increased the balance due.
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IRS Notice CP 523-Notice Of Default On An Installment Agreement