What to do about an IRS final notice

While a final notice from the IRS can be intimidating and stressful, there are options to solve your problem and prevent unexpected levies of bank accounts, paychecks, and other assets. To do so, you will need to quickly act.   

This IRS final notice can be Letter 11 (LT 11), CP 90 or Letter 1058, depending on which area of the IRS is handling your case. No matter which of these three letters you receive, they are basically all the same, and have the same purpose. This critical notice advises the taxpayer of certain rights as well as time to resolve their case. These notices give the taxpayer 30 days to request a Collection Due Process Hearing (CDP) by filing Form 12153. The CDP hearing provides an opportunity to dispute the IRS’s collection actions and present your case before the IRS Office of Appeals. This notice is a statutory right, and you will always want to file form 12153 to exercise these rights. 

After this hearing, the Appeals Officer will issue a written decision. This decision will outline the IRS’s stance on your case and any changes to the collection actions. If you disagree with the outcome, you may have additional options, including appealing the decision to the Tax Court.

If you have no grounds to appeal and you do owe the IRS the amount due but are unable to pay in full, work with the IRS to settle the debt by:

• Setting up an Installment Payment Plan that allows you to pay your debt over time
• Negotiate an Offer In Compromise to pay less than the full amount of the Debt (if you qualify),
• Be Placed in Currently Uncollectible Status (If you Qualify).

It's crucial to address IRS letters promptly and accurately to avoid escalating issues. If you're unable to pay the taxes owed, exploring payment arrangements or other options with the IRS can help prevent more severe consequences. Contact us today to schedule a consultation. We’ll review your tax situation and finances and provide you with our expert recommendation on which tax settlement option is best for you.

Green-Krist,CPA  specializes in assisting taxpayers with IRS and North Carolina Department of Revenue issues in the greater Raleigh, North Carolina area.