Maple Grove, MN : Guide to Understanding IRS Notices/Letters

By
Education & Training with FishCoin Tax Solutions IRS 00139079-EA

I represent taxpayers in Maple Grove, Minnesota and all the 50 States in the United State before all administrative levels—examination, collection, and appeals—of the Internal Revenue Service (IRS).

 

 

The primary way the IRS talk to taxpayers is through mail correspondence. It is important to open the mail and understand what the IRS is trying to communicate to the taxpayer.  Here are some common notices:

CP2000 Notice 

The IRS computer system matched the information reported on the taxpayer’s return with information reported by employers(W2), banks (1099-Int, 1099B) businesses and others. A discrepancy was found causing the notice to be generated and mailed to the taxpayers(s). The change may cause an increase or decrease in the tax or may not change it at all. If the IRS does not receive a response in time, they will issue a Statutory Notice of Deficiency.

 

CP2501 Notice 

The IRS has received information not reported on the tax return. If they do not receive a response by the due date of the letter, the IRS will issue a notice of proposed changes. Taxpayer should compare the filed return with the notice. Contact third party if there is an error from them.

 

CP11 Notice 

The IRS made changes to the return because they believe there’s a miscalculation. The taxpayer owes money on the tax return as a result of these changes. If you disagree, contact the IRS at the toll free number listed on the top right corner of the notice. If you contact the IRS in writing within 60 days of the date of this notice, they’ll reverse the change they made to the account.

 

CP14 Notice 

The IRS sent this notice because there is money owed on unpaid taxes This notice will show the taxes, penalties and interest owed, and the credits applied to the balance due. If the IRS doesn't get a response within 21 days, more penalties will be charged.

 

CP523 Notice 

The monthly payment for the taxpayer’s installment agreement is overdue and the IRS intends to terminate the taxpayers’ installment agreement and seize (levy) their assets.
Since the IRS did not receive one or more payments agreed they intend to terminate the agreement. Solution is to make a payment immediately and call the IRS with the payment information in order to stop further action.  If you communicate with the IRS timely, they may allow the agreement to stay in place.  

If you or someone you know have received any of the above notices, please feel free to contact me at by email at joe.alabi@fishcointax.com.

 

Joe Alabi EA MAcct(Taxation)

FishCoin Tax Solutions

Ph. (612) 516 – 5878

Fax (651) 419 -2021

www.fishcointax.com

Email : info@fishcointax.com

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Oct 18, 2020 09:00 PM