The IRS has redesigned its correspondence notices to be more \u201cuser friendly.\u201d\u00a0 This is supposed to make their notices easier to understand and therefore allow responses to occur in a more effective and efficient manner.\u00a0 IRS tax notices will now include a \u201cplain language explanation\u201d stating the reason for the correspondence and the action required to resolve the notice.\u00a0 Each notice should contain the tax year and a \u201cnotice\u201d or \u201cletter number\u201d on the top right-hand side of the first page.<\/p>\n
<\/p>\n
Some of the most common IRS tax notices received are:<\/p>\n
<\/p>\n
CP10: If this notice is received, then the IRS has adjusted an item in your current year\u2019s tax
\nreturn and because of this change they have also adjusted the estimated tax applied to next year.\u00a0 It is important to alert your tax advisor of this notice because the change the IRS made affects more than one tax year, one of which you have yet to file.<\/p>\n
<\/p>\n
CP11: If this notice is received, then the IRS has adjusted an item in your current year\u2019s tax
\nreturn and because of this change you now owe additional taxes.\u00a0 Before you write a check, call your tax advisor for advice!<\/p>\n
<\/p>\n
CP23: If this notice is received, then the IRS has adjusted the amount of estimated tax payments on your current year\u2019s tax return and because of this change you now owe
\nadditional taxes.\u00a0 You\u2019ll likely need to get copies of canceled checks to prove estimated taxes were made.\u00a0 There is a chance that one of your payments was mistakenly not made or it was applied to the wrong tax year.<\/p>\n
<\/p>\n
CP24: If this notice is received, then the IRS has adjusted the amount of estimated tax payments on your current year\u2019s tax return and because of this change you have an
\nadditional overpayment that was refunded.\u00a0\u00a0Don\u2019t cash the refund check until you verify with your tax advisor that the refund is correct!<\/p>\n
<\/p>\n
CP54G: If this notice is received, the IRS is having a problem matching the name and social security number reported on the tax return compared with the information received from
\nthe Social Security Administration. \u00a0You should review your Social Security card, as well as your spouse\u2019s, and\/or your dependents\u2019 social security cards to ensure that the names on the cards match exactly with how you report the names on your tax return.\u00a0 In many instances, this notice is generated after a year of marriage or adoption, when social security cards may not have been updated yet.\u00a0 The names reported on your tax return should always match the names on the most recently applicable social security cards.<\/p>\n
<\/p>\n
CP161: If this notice is received, then the IRS is requesting a payment on a balance due or unpaid balance.\u00a0 This notice is usually received as a follow up to another notice.\u00a0 You <\/p>\n CP2000: If this notice is received, then the IRS is proposing changes to your tax return based <\/p>\n CP2501: If this notice is received, then the IRS does not agree with the income that was <\/p>\n CP2005: If this notice is received, then the IRS has accepted the information previously sent.\u00a0 This notice is sent as a follow up to many of the other notices listed above.\u00a0Basically, if you get this notice, the IRS is saying, \u201cHey you were right, you don\u2019t owe any more taxes!\u201d\u00a0This is a notice to rejoice about!<\/p>\n <\/p>\n When IRS tax notices are received it is very important to send them to your tax advisor in order to update your account and to determine if any adjustments are needed in the current The IRS has redesigned its correspondence notices to be more \u201cuser friendly.\u201d\u00a0 This is supposed to make their notices easier to understand and therefore allow responses to occur in a more effective and efficient manner.\u00a0 IRS tax notices will now include a \u201cplain language explanation\u201d stating the reason for the correspondence and the action required […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1645","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=1645"}],"version-history":[{"count":1,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1645\/revisions"}],"predecessor-version":[{"id":1646,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1645\/revisions\/1646"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=1645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=1645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=1645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nwill need to reference the first notice in order to determine why there is a balance due.\u00a0 Sometimes this notice is received because you filed your return with a balance due, but did not pay the tax in full.\u00a0 You (or your tax advisor) should contact the IRS and request a\u00a0payment agreement<\/a>, if necessary.<\/p>\n
\non information that they received from your employer, bank and\/or other third party payers.\u00a0 This notice is generally referred to as a \u201cmatching notice.\u201d\u00a0 Sometimes, the IRS computer system is having a hard time matching to items that actually were reported on your originally filed return.\u00a0 Therefore, a\u00a0careful review of your return compared to the notice\u00a0<\/a>is necessary to see if they \u201cmatch.\u201d<\/p>\n
\nreported.\u00a0 You should consult with your tax advisor to figure out what the discrepancy is.<\/p>\n
\nyear and\/or future years tax files.\u00a0 Your tax advisor should recommend the steps needed in order to respond to the notice and determine if any additional taxes, interest and penalties are due.\u00a0 You should request that your tax advisor carbon copy you on any correspondence sent to the IRS on your behalf.<\/p>\n","protected":false},"excerpt":{"rendered":"