What to Do If You Get an IRS Notice in the Mail
Introduction
Few things cause more stress than receiving an IRS notice in the mail. Whether it’s a CP14 balance due notice, an IRS audit letter, or a CP504 levy warning, these letters should never be ignored. Every IRS notice has a deadline, and missing it can lead to penalties, interest, or even IRS wage garnishment.
Common IRS Notices Explained
- CP14 Notice: The first letter states you owe back taxes.
- CP501/CP503 Notices: Reminders that your account is delinquent.
- CP504 Notice: A final warning before the IRS issues a levy.
- IRS Audit Letter: A request for documentation or explanation of items on your return.
- Identity Verification Letters: Requests to confirm your identity before issuing a refund.
Why You Shouldn’t Ignore IRS Letters
- Penalties and interest increase daily.
- You may lose your right to appeal.
- The IRS can file a federal tax lien or levy your wages and bank accounts.
Steps to Take Immediately
- Read the notice carefully – Look for the notice number (e.g., CP14, CP504).
- Compare with your records – Verify the IRS’s claims against your tax return.
- Respond by the deadline – Many notices give you 30 days to reply.
- Seek professional help – A tax attorney can interpret the notice and protect your rights.
Conclusion:
IRS notices are serious, but manageable if you act quickly.
If you’ve received an IRS notice, contact our office today for a consultation. We’ll explain what it means and help you take the right next step.
Disclaimer:
This post does not constitute legal advice and does not create an attorney-client relationship, it is merely a general discussion of points of the law and may not be complete or up to date. Please contact our office for a consultation to discuss how tax laws may be relevant to your specific situation.