LEGAL GUIDE
Written by attorney Henry Carlton Rothrock | Mar 26, 2013

IRS Notices That You Should Not Ignore

Notices Received from the IRS

Do not ignore a notice that you receive from the IRS. Most of the notices have a short period of time for you to respond or appeal the decision. If you do not respond, you might be forever barred from reversing the action. Carl Rothrock is a tax attorney/lawyer in Dallas/Fort Worth. He is experienced in handling IRS negotiations and appeals. Below are some of the common notices and forms that you could receive from the IRS.

Some of the Common Notices and Forms You Receive from the IRS

CP 11 - Changes to Tax Return. The IRS sends this notice if you owe money on your tax return because of a change. If you do not dispute the balance, you should pay it upon receipt to avoid additional penalties and interests. If you dispute the amount, you should file an appeal or request a reconsideration. If you do not dispute it but cannot pay the money all at once, you should consider an offer in compromise, installment agreement, penalty abatement, or filing for bankruptcy. CP 22A - Data Processing Adjustment Notices, Balance Due of $5 or More This letter is sent to a taxpayer when a data processing adjustment has resulted in a balance being due on the account. If you do not dispute the balance, you should pay it upon receipt to avoid additional penalties and interests. If you dispute the amount, you should appeal it or request a reconsideration. If you do not dispute it but cannot pay the money all at once, you should consider an offer in compromise, installment agreement, penalty abatement, or a bankruptcy. CP 22E - Examination Adjustment Notice, Balance Due. The IRS sends you this noticewhen an exam tax adjustment was made to your account which resulted in a balance of $5 or more. If you do not dispute the balance, you should pay it upon receipt to avoid additional penalties and interests. If you dispute the amount, you should file an IRS appeal or request a reconsideration. If you do not dispute it but cannot pay the money all at once, you should consider an offer in compromise, installment agreement, penalty abatement, or a bankruptcy. CP 88 - Delinquent Return Refund Hold If you are entitled to a refund but did not file your tax return for a previous year, the IRS will hold your refund. You need to file your previous years' taxes right away. If you wait too long, you will forfeit your refund. If you owed money from the previous year, the IRS will apply the refund to the previous year. CP 90/CP 297/CP 297A - Notice of Levy and Notice of Your Right to a Hearing The IRS sends you this notice to inform you of their intent to levy your wages, bank accounts, assets, etc. DO NOT WAIT TO ADDRESS THIS PROBLEM. If you are appealing this action, you must file your appeal within 30 days of receiving this notice. Visit our webpage for IRS Levies and IRS Liens to see what action you can take to stop the levy. Options are appealing the tax assessment, paying the tax in full, filing bankruptcy, proposing an offer in compromise, paying the tax through an installment agreement, and placing the account on uncollectible status. CP 91/ CP 298 - Final Notice Before Levy on Social Security Benefits The IRS sends this notice when it attends to levy your social security benefits. The IRS can levy up to 15% of your social security benefits if you do not take appropriate action. You have only 30 days to appeal this notice. Visit our webpage for IRS Levies and IRS Liens to see what action you can take to stop the levy. Options are appealing the tax assessment, paying the tax in full, filing bankruptcy, proposing an offer in compromise, paying the tax through an installment agreement, and placing the account on uncollectible status. CP 161 - Request for Payment or Notice of Unpaid Balance, Balance Due The IRS sends this notice to you to show your underpaid taxes. The IRS also provides details on how much tax you are paying and if any credits were applied to your account. If your credits and payments do not show up on this notice, contact the IRS on the telephone number posted on the notice. If you agree with the amount, but cannot afford to pay it, consider the options of installment agreements, offer in compromise, bankruptcy, and placing your account on currently not collectible status. CP 504 - Final Notice, Balance Due Do not ignore this notice. This letter is the IRS' final attempt to collect the money it says that you owe. If you do not pay or make arrangements for an installment agreement or offer in compromise, be prepared to receive a Notice of Levy or a Federal Tax Lien soon. LT11 or L1058 - Final Notice of Intent to Levy This formal letter is normally sent a few weeks after you fail to respond and address CP 504 by paying the taxes you owe or by setting up a payment agreement with the IRS. It can be from an IRS office in the area. Typically, you have 30 days (from the data of the letter) to resolve the situation before the IRS levies your bank account(s), wages, and other assets. CP 523 - Notice of Default on Installment Agreement When you setup an installment agreement with the IRS you promise to pay a particular amount of money every month. A CP 523 notice is sent if the IRS is going to cancel your installment agreement. It will include information for the reason of termination. Common reasons include: you missed a payment, you did not file your tax return, and/or you have added a new balance due to the IRS. If you want to continue with your installment agreement, you will have only 30 days to contact the IRS to remedy this situation - either by making up your missed installment agreement or providing an updated financial information sheet. If you simply can no longer afford to pay your installment agreement, consider the options of bankruptcy or placing your account on uncollectible status. You might also consider lowering the payment on the installment agreement if your financial situation has changed. To speak to an experienced tax attorney in Dallas today, call the Rothrock Law Firm at (214) 432-5780.

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