Each year the IRS sends out millions of notices to taxpayers. These notices could have been sent to you for a number of different reasons, whether they’re providing information about your tax return, confirming changes to your account, requesting a payment, or even just advising you that you are eligible for a tax credit. If you get one of these notices, it is important to research and understand it so you know what steps you should take next.  Below are a few of the most common notices that taxpayers receive.

CP501 Notice

A CP501 is a balance due reminder that the IRS sends to taxpayers to let them know about a balance that is owed. This notice provides the total amount that is due, payment options in order to pay the balance, and a timeline in which you need to respond by. This is indication that the account is in collections.

CP503 Notice

A CP503 notice is the second balance due reminder reminding taxpayers of the balance that is due. This notice also provides a deadline to pay the balance owed in full in addition to providing options on payment methods. This is indication that the account is escalating further within the IRS’s collections system.

CP504 Notice

This is a final balance due reminder notice that the IRS will send reminding you of the tax balance that is owed to them. This notice is a warning that the IRS has made multiple attempts to inform the taxpayer of the balance due and now intends to take collection action.

CP91 Notice

A CP91 notice is a collection notice the IRS sends to taxpayers that are on Social Security. The notice informs the taxpayer that the IRS has an intent to levy up to 15% of their social security benefits for unpaid taxes.

LT11 Notice

An LT11 notice is a final collection notice the IRS will send before taking collection action such as levies, garnishments, and/or liens. The notice will state that the IRS had the Intent to seize your property or your rights to your property.

If you do receive IRS notices, remember not to panic and to read through the information that was provided to you. It may just be an informational notice letting you know that they are reviewing your tax return, or it could be a notice where the IRS is requesting substantiation. For more information on IRS notices, you can visit the IRS website by clicking here to read more about it.

 

The content contained on this page is strictly for informational purposes and may not apply to your specific situation. We recommend you consult with a tax professional to evaluate your unique situation. Forward Tax does not provide tax, bankruptcy, accounting or legal advice.

Posted in IRS