The IRS is required by law to notify taxpayers by mail of any actions taken or required in your tax situation. Below are sample letters along with explanations of what’s happening in each case.
IRS Collections
CP14: Notice of Unpaid Taxes
This notice explains what you owe and how long you’ve had the balance due for. While it’s good to act early, it’s worth asking a tax expert if you receive this letter to know how to proceed.
CP-504, LT-11, or LT-16: Notice of Intent to Levy
If you owe a balance to the IRS, they will attempt to seize funds from legitimate sources of income at some point. These letters are sent fairly early in the process and we can help you resolve the issue. If you didn’t do anything after receiving these letters, you will probably receive a levy on bank accounts or wages in approximately 90 days.
1058: Final Notice of Intent to Levy
It’s an intent to levy. If you don’t respond in 45 days, you can expect a bank levy or wage levy. This letter usually comes from the IRS officer.
668-W: Notice of Levy on Wages, Salary, and Other Income
The IRS warned you twice, and now your wages/salary are being levied. It’s still not too late to act but you’ll want to act quickly in attempt to release the levy. Please contact us!
668-D: Release of Levy/Release of Property from Levy
This is the goal we hope to achieve if you are levied! A release from levy means that your wages or your bank account are free from levy. An installment agreement has been arranged to or “currently-not collectible” has been agreed to. You can research an Offer in Compromise or penalty abatement next.
CP-523: Intent to Terminate Installment Agreement
If you receive this notice, it means you missed a payment or weren’t current on your taxes, and your installment agreement was terminated. Though, you have a couple of options now: 1. we can get a better type of resolution for you, or 2. there are 90 days to come up with a new plan before you get levied.
Offer Acceptance
The only way to remove a tax lien off your record for less than the full amount is by getting an Officer in Compromise accepted. We have a lot of experience constructing offers that get accepted by the IRS, so please contact us if you’d like to improve your chances of getting your offer accepted.
3254: Examination Appointment
This is a notification of an audit. There are many reasons why this happens, from multiple red flags on your tax returns to a random selection. You can manage this appointment yourself, or you can hire us to represent you during the audit.
4549: income Tax Examination Changes
Once the audit is close to an end, the IRS will send this letter notifying you of the changes made to the tax returns. This form also begins a 30-day clock for you to wrap up your audit – it offers a final opportunity to respond to the IRS. The individual breakdown of items allows you and your tax professional to really focus and see what was done right and wrong.
531-T: Notice of Deficiency
Your audit is almost over. At this point, the IRS offers you 90 days to go to tax Court or to work with the IRS if you want to dispute any items in the notice. You need to act fast if you’d like to resolve the items in questions, and it’s better to do it with a tax professional.
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