April 15 has come and gone. The tax returns have been filed and the IRS is far from your mind. So what do you do when you get a letter from the IRS in the mail?
Don’t panic! It’s not the end of the world. The notices the IRS sends out generally cover a very specific issue, and it could be as simple as needing a signature!
The IRS recently updated its list of standard letters that it sends to taxpayers. Basically, The IRS has a series of form letters they use that are identified on each page of the letter. Don’t worry, it’s not Greek! This should help you “translate” some of the possible letters:
| Number | Description |
| CP12 | We made changes to correct a miscalculation on your return. |
| CP14 | We sent you this notice because you owe money on unpaid taxes. |
| CP23 | We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a balance due because of these changes. |
| CP91/ CP298 |
Final Notice Before Levy on Social Security Benefits |
| CP161 | Request for Payment or Notice of Unpaid Balance, Balance Due |
| CP501 | You have a balance due (money you owe the IRS) on one of your tax accounts. |
| CP504 | You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe. |
| CP57 | Notice of Insufficient Funds |
| CP2000 | Notice of Proposed Adjustment for Underpayment/Overpayment |
There are more notices identified at irs.gov.
After you read the letter, compare the information on the letter to the information on the return in question. Believe it or not, the IRS notices are not always right! Many times, tax payments may not have been properly credited to an account causing the IRS to send out a balance due notice. These notices are computer-generated, so if the information going in the computer was keyed in error, the notice going out would be in error also. Whatever you do, don’t ignore the letter.
And don’t forget, your Rea associate is ready and able to help solve the issue and deal with the IRS for you.
This article was originally published in Illuminations: Facts & Figures from people with a brighter way, a Rea & Associates enewsletter, 5/30/2007.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.