IRS LETTERS CAN BE FRIGHTENING
If you owe the IRS, you have a very serious problem. It may take the IRS several years to catch up to you, but they're relentless and have no mercy in collecting all the money that is owed. When the collection process starts, they'll make your life miserable and literally ruin all aspects of your life. The IRS problems will not just go away by themselves; they just keep getting worse with penalties and interest being added each day. Below are some of the most common letters the IRS sends out in the collection process.
CP14 – Notice of Balance Due
You owe money for unpaid taxes and this notice explains how much you owe and when and how to pay it. This notice starts the IRS collections process and continues until the account is satisfied or until the IRS may no longer legally collect the tax. A CP14 will indicate the amount of tax owed and any penalties and interest accrued on your unpaid balance. If you agree with the amount owed (perhaps you just forgot to mail in your tax check), then all you need to do is pay the tax and the issue is resolved.
CP501/CP71 – First Reminder That You Have a Balance Due
You have a balance due on your tax account, but you didn’t respond to the CP14 notice. This notice again specifies the amount due plus penalties and interest, the deadline for paying it, and payment options. If you agree with the amount shown, all you need to do is pay the tax (a single payment or in installments with the IRS), and the issue is resolved. Warning: if you do not respond to the CP501 notice, the IRS can file a Notice of Federal Lien on your assets.
CP503 – Second Reminder That You Have a Balance Due. Immediate Action is Required on Your Part
You still have an unpaid balance on your tax account and the IRS has not received a response to its prior notices. This reminder again shows the amount due, the deadline for paying it, and payment options. If you cannot pay the amount shown on the notice, contact the IRS to set-up payment arrangements. Warning: if you do not respond to the CP503 notice, the IRS can file a Notice of Federal Tax Lien on your property.
CP504 – Urgent Notice – Intent to Levy Your Assets
At this point, the IRS notices start to get more intimidating because you haven’t responded to previous notices. This notice says it represents an “intent to levy your assets,” but it really is another (strong) reminder that you have an unpaid balance on your tax account. If you do not pay the amount due immediately (or set-up an arrangement to pay the tax), the IRS will seize (levy) your state income tax refund and apply it toward the amount you owe. At this point, your state tax refund is the only asset the IRS can levy. Generally, this is the final notice you will receive before the IRS issues a “Final Notice of Intent to Levy.” The best way forward at this point is to pay the tax due (including penalties and interest) or enter into a tax settlement agreement with the IRS. At this point you should contact our firm 833-836-6398, or complete the form below for a free case evaluation before it's too late.
CP90/LT11/LT1058 – Final Notice of Intent to Levy Your Assets
This final notice can be a true source of anxiety, for it notifies you of the IRS’s intent to levy certain assets for unpaid taxes. It also informs you of your right to a Collection Due Process Hearing (a hearing with the IRS office of appeals) if you respond within 30 days from the date of the notice. At this point, the IRS will begin to levy other assets you have (i.e., your wages, bank account, personal assets, social security, etc.). Do not ignore this notice. If you do, the IRS will begin to take your assets without further warning. At this point it maybe to late to prevent bank levies or seizure. However, we may overturn them and prevent any future collection action. Please complete the free case evaluation on the bottom of this page.
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