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.
What Should Do First If I Receive A CP-11 Notice?
The first thing you is to determine if you believe the adjustments to be correct. If everything is correct and you simply made a mistake on the return, you will want to make arrangement to pay the balance by the due date on the notice. If you fail to pay by the balance due by the due date, you will be accessed additional penalties and interest. If you do not have the money to pay in full, you can request an installment agreement which allows you to pay over time.
How Long Can I Wait to Respond?
The notice will indicate a response by date. You will want to respond will in advance of that date.
What If I Don’t Agree With the CP 11?
If you do not agree with the CP 11, you will want to preparer a letter of dispute and attach any supporting documentation. Of course, nature of the dispute has a lot to do with the action that you can take. If the nature of the dispute is extremely complex, you may need to seek representation.
IRS Notice CP 161- Request For Payment Or Notice of Unpaid Balance