Addressing IRS Notices

Don't panic if you receive an IRS notice in the mailbox. Your IRS issues will go away in no time because most notices are easy enough to resolve.

The IRS sends out millions of notices every year. These could be anything from default notices to corrections on tax returns. Instructions on how to resolve the matter are with every issue-specific notice.

A specific CP or collection process number can be seen at the top of page 1 or at the left side of the notice's tear-off stub.

The common CP (collection process) numbers are:

• CP12 – Overpayment of at least $1 (Math error)
• CP14 – Balance due
• CP49 – Overpaid tax applied to other taxes you need to pay
• CP90 – Notice of intent to levy (Final notice, simultaneously sent with CP297)
• CP91 – Final notice before levy on Social Security benefits
• CP161 – No math error, balance due
• CP297 – Final notice � Notice of your right to a hearing (CP90 & CP297 are sent simultaneously)
• CP298 – Final notice of intent to levy on Social Security benefits (CP91 & CP298 are sent simultaneously)
• CP501 – Balance due reminder notice
• CP504 – Balance due urgent notice
• CP523 – Notice of default on installation agreement
• CP2000: Notice of proposed adjustment for underpayment or overpayment

You do not have to respond if you agree with the notice and do not owe a balance. Send your payment based on the details on the notice if you do need to pay a balance. Prompt action on your part will ensure that you only need to pay additional tax and have not accrued any penalties and interest.

In cases of disputes, you may contact the IRS through the information listed on the notice. It takes up to 30 days for the IRS to respond, so call or write to them immediately.
The tear-off portion of the notice and additonal documentation should be attached to your letter.

The response may simply answer your questions or it may be another notice requesting more information. Simply follow further instructions.

Always keep copies of IRS correspondences.

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