The Internal Revenue Service (IRS) sends out a variety of notices and letters when you owe income tax debt. Here’s a brief overview of some of the more common notices:
CP14: This is a notice that you owe money on unpaid taxes. This is typically one of the first notices you’ll receive if you have an unpaid balance after filing your tax return.
CP501: A reminder notice that tells you about the balance due.
CP503: A second reminder notice indicating that you have an unpaid balance due.
CP504: An urgent notice that tells you the IRS intends to levy certain assets if you don’t pay. This means the IRS can seize your property or rights to property, like wages, bank accounts, social security benefits, and other income sources.
Letter 1058 or LT11: Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This is an important notice that means the IRS plans to seize assets if you don’t pay or make another type of arrangement.
CP90: Another version of the Final Notice of Intent to Levy. This one also provides information about your right to a hearing.
CP91: A notice informing you of the IRS’s intent to levy up to 15% of certain federal payments due to unpaid taxes.
CP297: This is another Notice of Intent to Levy, but it’s combined with the CP90/CP297A Notice of a Right to a Hearing.
CP3219A, Statutory Notice of Deficiency: This notice gives you a chance to challenge the amount owed in Tax Court. If you disagree with the amount, it’s crucial to respond to this notice.
CP22E: This is a notice of changes made to your return and that you owe money as a result of these changes.
CP161: No payment received or payment is not enough. This notice will inform you if the IRS didn’t receive a payment or if the payment received was less than the amount owed.
Letter 3172: Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320. This notice informs you that a lien has been filed against your property.
CP523: Notice of intent to terminate your installment agreement and seize (levy) your assets. It means you’ve defaulted on your payment agreement.
Remember, these notices and letters are just an overview, and there are many other IRS correspondences that taxpayers might receive. If you get any notice from the IRS, it’s crucial to read it carefully and take action as necessary. If you’re unsure about what to do, it might be a good idea to consult with a tax professional or an attorney specializing in tax matters.