Receiving a letter from the IRS can make any business owner become panic-stricken. There are nearly 75 different IRS letters and notices. It could be Notice number CP 136 if your payroll deposit requirements have changed, or CP 162 which notifies you of a penalty if your return was filed incomplete or late.
The IRS may send letters through certified mail or via regular mail. If the letter is sent through certified mail, it can mean that the notification is regarding an extremely time-sensitive issue.
What to do When You Receive an IRS Notification?
If you ever receive a letter or a notice from the IRS, the first thing you should do is contact your tax accountants. They will help you understand what the notification is about and then handle it professionally on your behalf.
The IRS is always very clear in why they are contacting the business owner and they also include guidance on how the issue should be handled. If you have received a notice or a letter from the IRS, it could be due to any of the following reasons:
· There was an error, and you are owed a bigger refund
· There was an omission or error on your tax return, and you need to pay additional tax
· The IRS needs supplementary information regarding your tax return
Experienced tax accountants will carefully go through the contents of the IRS notice and help you comply with the requirements in a timely and appropriate manner.
Different Types of Letters & Notices from the IRS
Some of the more common letters from the IRS include:
CP 14: First Notice of Balance Due
If you have filed the taxes but you still have an outstanding balance, the CP14 is usually the first notice sent by the IRS.
CP 523: Intent to Terminate Your Installment Agreement and Seize Your Assets
This notice is sent before the IRS terminates your installment agreement with them. If you do not take any action, they may seize other assets, garnish your bank account, or levy your wages. Talk to your tax accountants to understand the details of this notice and what actions you need to take to rectify the situation.
CP 501: Reminder Notice
If you have an overdue account, the CP501 will be either the first or second notice that you will receive.
CP 504: Final Notice And IRS Intends to Levy
This is the 3rd and final notice you receive if you have not paid the amount in full and the IRS is about to start looking for assets to levy. Talk to your tax accountants right away after you receive this notice to prevent significant repercussions.
CP 503: Second Request Notice
This is the second notice you receive if you have not cleared the due balance.
CP 90: Intent to Seize Assets
This letter notifies that your assets and any bank accounts, automobiles, real estate, salaries, retirement benefits, etc. are about to be levied by the IRS. Your tax accountants need to be made aware as soon as you receive this letter.
Work with Experienced Tax Accountants to Meet the IRS Request
If you are not sure how to strategically meet the IRS’s demands or you have any questions, it will be best to work with trusted and certified professionals. At Remote Accounting Online, we can help you with any kind of IRS tax problems including foreign disclosure issues and IRS audits. Call us today at 541-772-5555 or reach us online to schedule a consultation.