Receiving a letter from the Internal Revenue Service (IRS) can be intimidating and can lead to many questions, such as:
What to do when you receive an IRS letter?
There are many resources on the IRS website that provide guidance to help you better understand the letter you received and how best to respond. Go to the IRS website and enter in the Notice ID, provided in the top right corner of the letter, in the search bar for more information.
What not to do?
Don’t ignore the notice. Depending on the type of notice received, there may be a response deadline that if not met could have negative impacts on your tax situation. It is also recommend that you send a copy of the notice received to your accountant, as your accountant may need this information to reconcile your tax records.
If you need assistance responding to the IRS regarding the notice you received, or need a payment plan set up, Abacus CPAs is here to help. Contact our offices today for more information (417) 380–5000.
There are several common notices that are sent to taxpayers (each of these notices have a particular letter indicator). In this chart, you will find easy-to-understand basics for these common notices, which includes the type of notice listed and the recommended response.
|IRS Notice Description||Notice #||Recommendation on Responses to Letter:|
|Notice of Intent to Levy regarding Unpaid Balance Due||CP504||Pay balance due to the IRS in full or make payment arrangement(s).|
|A Change in the Amount of Refund||CP134R||Review the record to see if you agree with the change. If you do not agree, respond to the IRS with documentation as to why the information the IRS has is incorrect.|
|Verification of Identity||5447C||Send the requested supporting documentation to prove your identity so the return can be processed.|
|Tax Return information does not match IRS records & IRS is proposing changes||CP2000||Review records to see if you agree with the change. If you do not agree with the changes, speak with your accountant to see if an Amended return needs to be filed.|
|Installment Agreement Payment Due||CP521||Pay installment agreement on the required due date to avoid default on the Installment Agreement.|
|Notice Request for Supporting Documentation: IRS is Auditing your Tax Return||CP75 or CP75A
|Review the notice and respond timely with the supporting documentation the IRS is requesting.|
|Balance Due Owed to the IRS||CP14||Pay balance due to the IRS in full or make payment arrangement(s).|
|Amount Due to the IRS has Changed||CP11||Review the record to see if you agree with the change. If you do not agree, respond to the IRS with documentation as to why the information the IRS has is incorrect. This notice is commonly sent out due to misreporting the Estimated Payments on your tax return.|
At Abacus™ CPAs, our focus is you! Contact us today if you need help or more information on this valuable topic.
We believe that our employees and clients deserve to interact in an environment that fosters growth, trust, and confidence. Abacus™ professionals provide leadership by relentlessly pursuing the best guidance possible so those we serve can make smarter decisions.
We are here to serve you and your business. Contact us today by calling 417-380-5000, or visiting our website at www.abacustrucking.com