IRS Notices
Are IRS collections
making your life miserable?
Have you received a
letter or Notice from the IRS? As you probably already know, these letters and
notices are sometimes hard to understand and contain very short response
deadlines, even as fast as one day. If you’re late in responding, the
consequences can be devastating. For instance, you might lose your right to
contest the IRS’s action. Or worse – lose your home.
If an IRS employee is
specifically tasked with handling your file, you will be informed of his or her
name, employee type, and what the individual is capable of doing to you.
IRS notices and
letters involve some of the following tax problems:
1. Delinquent tax returns
and late tax payments
2. Formal Notice of taxes
you owe (Statutory Notice of Deficiency)
3. IRS Lien (Notice of
Federal Tax Lien)
4. Seizure and Sale of
your assets (Notice of Intent to Levy)
Delinquent tax returns
and late tax payments – The longer you wait to file your tax returns and pay
your taxes, the more serious your IRS problem becomes. The resulting penalties
and interest increase each day, and your initial tax debt could triple within a
short period of time.
Statutory Notice of
Deficiency –
This is a formal document issued by the IRS stating how much you owe Uncle Sam.
It gives you a limited time to respond. If you miss the deadline, you
could lose your right to contest the assessed tax liability.
IRS Liens – When the IRS
files a lien, it hurts your credit and is a negative mark against your real
estate or business.
IRS Levy – The one notice
that you should never ignore is the IRS’s Notice of Intent to Levy. If you
don’t react properly to this Notice, the IRS collections team could seize your
wages, bank account, automobile, or home. This is potentially the IRS’s most
powerful tool, and they’re not afraid to use it.
Understanding Your
Notice or Letter
Use the following
chart to find your letter or Notice. The description will give you an idea of
the IRS’s intentions.
|
IRS Notice |
Description |
|
CP02H |
You owe a balance
due to amending your tax return to show receipt of a grant received as a
result of Hurricane Katrina, Rita, or Wilma. |
|
CP03A |
You received a tax
credit (called the First-Time Homebuyer Credit) for a home you purchased.
This Notice informs you of how to repay it. |
|
CP03B |
You received a tax
credit (called the First-Time Homebuyer Credit) for a home you purchased.
This Notice informs you that you don’t have to repay the credit as long as
the home remains your main home for at least three years after you purchase
it. It also explains situations where a home stops being a main home. |
|
CP08 |
You may qualify for
the Additional Child Tax Credit and be entitled to some additional money. |
|
CP10 |
We made a change(s)
to your return because we believe there’s a miscalculation. This change(s)
affected the estimated tax payment you wanted applied to your taxes for next
year. |
|
CP10A |
We made a change(s)
to your return because we believe there’s a miscalculation involving your
Earned Income Credit. This change(s) affected the estimated tax payment you
wanted applied to your taxes for next year. |
|
CP11 |
We made changes to
your return because we believe there’s a miscalculation. You owe money on
your taxes as a result of these changes. |
|
CP11A |
We made changes to
your return because we believe there’s a miscalculation involving your Earned
Income Credit. You owe money on your taxes as a result of these changes. |
|
CP11M |
We made changes to
your return involving the Making Work Pay and Government Retiree Credit. You
owe money on your taxes as a result of these changes. |
|
CP 12 |
Changes to Tax
Return, Overpayment |
|
CP 14 |
Balance Due |
|
CP21A |
We made the
change(s) you requested to your tax return for the tax year specified on the
Notice. You owe money on your taxes as a result of the change(s). |
|
CP21B |
We made the
change(s) you requested to your tax return for the tax year specified on the
Notice. You should receive your refund within 2-3 weeks of your Notice. |
|
CP21C |
We made the
change(s) you requested to your tax return for the tax year specified on the
Notice. You’re not due a refund nor do you owe any additional amount. Your
account balance for this tax form and tax year is zero. |
|
CP21E |
As a result of your
recent audit, we made changes to your tax return for the tax year specified
on the Notice. You owe money on your taxes as a result of these changes. |
|
CP21I |
We made changes to
your tax return for the tax year specified on the Notice for Individual
Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result
of these changes. |
|
CP22A |
We made the
change(s) you requested to your tax return for the tax year specified on the
Notice. You owe money on your taxes as a result of the change(s). |
|
CP22E |
As a result of your
recent audit, we made changes to your tax return for the tax year specified
on the Notice. You owe money on your taxes as a result of these changes. |
|
CP22I |
We made changes to
your tax return for the tax year specified on the Notice for Individual
Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result
of these changes. |
|
CP 23 |
Estimated Tax
Discrepancy, Balance Due |
|
CP31 |
Your refund check
was returned to us, so you need to update your address. |
|
CP45 |
We were unable to
apply your overpayment to your estimated tax as you requested. |
|
CP 49 |
Overpaid Tax Applied
to Other Taxes You Owe |
|
CP53 |
We can’t provide
your refund through direct deposit, so we’re sending you a refund check by
mail. |
|
CP 57 |
Notice of
Insufficient Funds |
|
CP 59 |
Notice to Request a
Tax Return |
|
CP 88 |
Delinquent Return
Refund Hold |
|
CP 90 |
Final Notice –
Notice of Intent to Levy and Notice of Your Right to a Hearing |
|
CP 91 |
Final Notice Before
Levy on Social Security Benefits |
|
CP120 |
You need to send us
documentation of your tax-exempt status. |
|
CP130 |
Your tax return
filing requirements may have changed: You may no longer need to pay the
Alternative Minimum Tax. |
|
CP139 |
Your tax return
filing requirements may have changed: You may no longer need to file Form 941
and Form 940. |
|
CP152 |
We have received
your return. |
|
CP153 |
We can’t provide you
with your refund through a direct deposit, so we’re sending you a refund
check/credit payment by mail. |
|
CP 161 |
Request for Payment
or Notice of Unpaid Balance, Balance Due |
|
CP166 |
We were unable to
process your monthly payment because there were insufficient funds in your
bank account. |
|
CP178 |
Your tax return
filing requirements may have changed: You may no longer owe excise tax. |
|
CP231 |
Your refund or
credit payment was returned to us and we need you to update your current
address. |
|
CP276A |
We didn’t receive a
correctly completed tax liability schedule. We normally charge a Federal Tax
Deposit (FTD) penalty when this happens. We decided not to do so this time. |
|
CP276B |
We didn’t receive
the correct amount of tax deposits. We normally charge a Federal Tax Deposit
penalty when this happens. We decided not to do so this time. |
|
CP 297 |
Final Notice –
Notice of Intent to Levy and Notice of Your Right to a Hearing |
|
CP 297A |
Notice of Levy and
Notice of Your Right to a Hearing |
|
CP 298 |
Final Notice Before
Levy on Social Security Benefits |
|
CP 501 |
Reminder Notice –
Balance Due |
|
CP 503 |
Second Request
Notice – Balance Due |
|
CP 504 |
Final Notice –
Balance Due |
|
CP 521 |
Installment
Agreement Reminder Notice |
|
CP 523 |
Notice of Default on
Installment Agreement |
|
CP 2000 |
Notice of Proposed
Adjustment for Underpayment/Overpayment |
|
Letter 0484C |
Collection
Information Statement Requested (Form 433F/433D); Inability to Pay/Transfer |
|
Letter 0549C |
Balance Due on
Account is Paid |
|
Letter 0681C |
Proposal to Pay
Accepted |
|
Letter 0757C |
Installment
Privilege Terminated |
|
Letter 1058 |
Final Notice prior
to levy; your right to a hearing |
|
LT 11 |
Final Notice prior
to levy; your right to a hearing |
|
LT 16 |
Please call us about
your overdue taxes or tax return. |
|
Letter 1615 |
Mail us your overdue
tax returns. |
|
Letter 1731 |
Please help us
locate a taxpayer. |
|
Letter 1737 |
Please complete and
site Form 433F, Collection Information Statement. |
|
LT 18 |
Mail us your overdue
tax returns. |
|
Letter 1961C |
Installment
Agreement for Direct Debit 433-G |
|
Letter 1962C |
Installment Agreement
Reply to Taxpayer |
|
Letter 2050 |
Please call us about
your overdue taxes or tax return. |
|
Letter 2257C |
Balance Due Total to
Taxpayer |
|
Letter 2271C |
Installment
Agreement for Direct Debit Revisions |
|
Letter 2272C |
Installment
Agreement Cannot be Considered |
|
Letter 2273C |
Installment
Agreement Accepted: Terms Explained |
|
Letter 2318C |
Installment
Agreement: Payroll Deduction (F2159) Incomplete |
|
Letter 2357C |
Abatement of
Penalties and Interest |
|
LT 26 |
We have no record of
receiving your tax returns. |
|
Letter 2603C |
Installment
Agreement Accepted – Notice of Federal Tax Lien Will be Filed |
|
Letter 2604C |
Pre-assessed
Installment Agreement |
|
LT 27 |
Please complete and
sign Form 433F, Collection Information Statement. |
|
Letter 2761C |
Request for Combat
Zone Service Dates |
|
Letter 2789C |
Taxpayer Response to
Reminder of Balance Due |
|
Letter 2840C |
CC IAPND Installment
Agreement Confirmation |
|
Letter 3030C |
Balance Due
Explained:Tax/Interest Not Paid |
|
Letter 3127C |
Revision to
Installment Agreement |
|
Letter 3217C |
Installment
Agreement Accepted: Terms Explained |
|
Letter 3228 |
Reminder Notice. |
|
LT 39 |
Reminder Notice. |
|
Letter LP 47 |
Address Information
Request |
|
Letter 4903 |
We have no record of
receiving your tax returns. |
|
Letter LP 59 |
Please contact us
about the taxpayer levy. |
|
LP 64 |
Please help us
locate a taxpayer. |
|
Letter 668D |
We released the
taxpayer’s levy. |
|
LP 68 |
We released the
taxpayer’s levy. |