Receiving a notice from the IRS is never
pleasant, but don’t panic just yet. The IRS also sends notices purely informational
purposes. If you told the IRS your tax identity was stolen, you will receive a
notice from them, a CP01, informing you that they have received the information
you provided, have verified your claim, and put an identity theft indicator on
your account. There are many such harmless notices that taxpayers receive if
they have communicated with the IRS.
An IRS notice might also come unexpectedly.
If you file your tax return and receive an IRS notice, it might be for many
reasons. The IRS could be sending notice of an adjustment they made to your
return. But in some cases, there might be an error on your return leading to an
understatement of taxes due, in which case to you owe would taxes to the IRS.
An IRS notice might be sent simply to tell you that the IRS is reviewing your
After receiving an IRS notice that informs
you of a tax debt, you should first consider all options before contacting the
IRS. Even though the IRS provides guidance, most of the time the resolution is
in their favor, not yours. To make sure you resolve your tax difficulty in a
way that provides you the maximum benefits, you should seek advice from experts
in the field before contacting the IRS.
If a notice from the IRS is simply
providing information, keep the notice in your tax records. If the notice is
informing you of a tax debt, you should pay the full amount in a lump sum if affordable.
If not, you may explore IRS payment plans such as an Installment Agreement,
Currently Not Collectible, and Offer in Compromise to resolve the debt.
An IRS notice regarding federal tax lien
must be taken seriously and responded to immediately. If the IRS does not
receive a reply and no effort is made to resolve the tax debt, the IRS will
move to levy. As always, it is best to start making efforts to resolve the debt
after receiving the first notices from the IRS regarding payment of the tax
Labels: Back Taxes, IRS, IRS Notices, Tax News, Taxpayers