IRS Notices and Effective Responses

IRS Notices and Effective Responses ()

Introduction:

In the wake of the challenges posed by the COVID-19 pandemic, the Internal Revenue Service (IRS) temporarily suspended certain activities, including the issuance of notices. However, as of September 2023, the IRS is set to resume sending out a series of notices to taxpayers. Understanding these notices is crucial for individuals and businesses alike, as they play a pivotal role in communicating the IRS’s intentions and actions. In this article, we’ll explore the various IRS notices, their implications, and what steps can be taken if you find yourself on the receiving end.

IRS Notices Resumption:

The IRS has adopted a strategic approach to avoid overwhelming call volumes. Notices will be staggered, sent at different times to various taxpayers. Recently, clients have begun bringing in these notices, emphasizing the importance of being well-informed about their implications.

Understanding IRS Notices:

Let’s delve into some common IRS notices and what each signifies:

CP-14 – Reminder of Balance Due:

This notice serves as a gentle reminder for taxpayers with outstanding balances.

CP 516 – Delinquent Tax Returns:

Issued when tax returns are overdue and need immediate attention.

CP-504 – Threat to Levy:

Indicates the IRS’s intention to levy assets if the outstanding balance is not addressed promptly.

CP-90 – Final Notice of Intent to Levy:

A serious notice, requiring an appeal within 30 days if resolution with the IRS is not achieved.

CP-523 – Notice of Intent to Levy and Terminate Installment Agreement:

Informs about the intention to levy and terminate an existing installment agreement.

CP-40 – Assigned to Private Debt Collector:

Signals the involvement of a private debt collector, who can only negotiate installment agreements.

CP-508C – Certification to State Department:

Serious notice of seriously delinquent taxes, requiring an appeal within 30 days.

Letter 1153 – Proposed Assessment Responsibility Party:

Provides a 60-day window to protest proposed assessments involving responsible parties.

Levy Notices:

Apart from the aforementioned notices, the IRS issues specific levy notices:

668-A – Attach to Any Balances in the Account:

A notice attached to balances in an account at the time of issuance.

668-W – Continuous Levy on Wages or Self-Employment Income:

Imposes a 50% penalty on employers failing to comply with continuous levies.

What to Do If You Receive a Notice:

Receiving an IRS notice can be alarming, but prompt action is crucial. If you find yourself facing any of the mentioned notices, it’s advisable to contact our office immediately. Our team can guide you through the available options, providing both immediate relief and a comprehensive solution tailored to your situation.

News

In January 2024, New York State witnessed a modest 0.3% increase in local sales tax collections compared to the same period in 2023, as revealed by State Comptroller Thomas P. DiNapoli. The total collections reached nearly $1.9 billion, marking a $4.8 million uptick from the previous year. Notably, New York City led the way with a 3.5% surge, totaling $873 million, while county and city collections in the rest of the state saw a slight decline of -2.8%, totaling $910 million. However, caution is advised for 2024 sales tax revenue projections, as overall growth has tapered off, with less than half of the counties experiencing year-over-year increases.

Conclusion:

Navigating through IRS notices may seem complex, but understanding their nuances is essential for taxpayers. As notices resume post-COVID, staying informed about each notice’s implications and taking timely action can make a significant difference. Remember, our office is here to help you navigate through these challenges, ensuring a smooth resolution to any IRS notice you may receive.

Table of Contents

Contact Us

Featured Blog Posts

What is IRS? IRS Tax and Audit Guide: Role of Internal Revenue Service in Enforcing Federal Tax Laws. Contact the IRS for Federal Tax Return, Form W-9 and More.

Introduction to What is IRS (Internal Revenue Service) The Internal Revenue Service (IRS) is a critical agency within the United States responsible for administering and enforcing the federal tax laws for the United States government. It plays a pivotal role in funding essential public services and supporting the nation’s economic

Read More »

Where is my New York State tax refund?

Introduction When tax season comes to a close, many New Yorkers eagerly anticipate receiving their state tax refunds. It’s a well-deserved reward for diligent taxpayers, providing a financial boost that can be used for various purposes. In this article, we will explore the ins and outs of the New York

Read More »

Miami Florida Tax Articles

Florida Tax Guide Is Social Security Taxed in Florida Federal Tax Benefits of Retiring in the State

Florida Tax Guide: Is Social Security Taxed in Florida? Federal Tax Benefits of Retiring in the State of Florida 2023

Social Security benefits serve as a vital source of income for many retirees. As individuals near their golden years, understanding the nuances of Social Security taxation becomes crucial. In this

September 11, 2023
Florida Tax Information for Taxpayers and Tax Professionals Do I Need to File State Income Taxes in

Florida Tax Information for Taxpayers and Tax Professionals: Do I Need to File State Income Taxes in Florida? Role of Florida Department of Revenue

Are you a resident of the Sunshine State wondering about your state tax obligations? Understanding whether you need to file state taxes in Florida is essential to ensure compliance with

August 28, 2023
Florida State Tax Rate Is There An Income Tax in Florida Everything You Need To Know About Fl ()

Florida State Tax Rate 2023: Is There An Income Tax in Florida? Everything You Need To Know About Florida Tax. Florida Income Tax Calculator

In a world where state income taxes are the norm, Florida stands out as a haven for residents seeking a reprieve from this financial burden. The Sunshine State has gained

August 18, 2023

Have More Questions?

If you have not found the Tax & Accounting answers you are looking for, feel free to search here and browse our article catalog!