If you received and IRS Letter or Notice don't panic because you are not alone.  For the most part, these letters and notices with a harsh tone are meant to scare you into a resolution that you are not comfortable with. However, in some instances, immediate attention is required and action should be taken to protect you from IRS collection efforts. Even if action needs to be taken, a few simple protects your rights. Below are the most common letters the IRS sends out. Each letter or notice contains a description of the letter and what action needs to be taken to resolve the problem the letter adresses.

IRS Letters and Notices by Form Number

CP 11: Changes to Tax Return

Notice: This is sent to a taxpayer informing them that a change was made to there tax return and that change resulted in a balance that is now due and owing to the IRS.

CP 22A: Data Processing Adjustment Notices

Letter: This is sent to a taxpayer informing them that a data processing adjustment has resulted in a balance that is now due and owing to the IRS.

CP 22E: Examination Adjustment Notice, Balance Due

Notice: This is sent to a taxpayer when an exam tax adjustment was made on there account which results in them having a balance of $5 or more.

CP 23: Estimated Tax Discrepency, Balance Due

Letter: This is sent to the taxpayer informing them that there is a difference between the estimated payment you were supposed to make and the actual amount of money posted to your account.

CP 88: Delinquent Return Refund Hold

Notice: This is to inform you that the IRS is taking your refund. The reason for this is because you did not file a tax return in a prior year. However, if you file all necessary returns you can get your refund.

CP 90/CP 297/CP 297A: Notice of Levy and your Right to a Hearing

Letter: This is sent to inform you that the IRS is about to levy money that is due to you. This can be anything from and include: salary, Social Security benefits, pension, bank accounts, real estate, automobile, 401k, commissions and wages.

CP 91/CP 298: Final Notice Before Levy on Social Security Benefits

Notice: This is sent to inform you that the IRS is in the process of levying your Social Security benefits. If you do not respond immediately, the IRS will take up to 15% of the social security benefits that you receive.

CP 161: Request for Payment or Notice of Unpaid Balance

Notice: This is sent to inform you that you underpaid on your taxes. The notice will include how much income you reported paying, as well as any credits that are posted on your account.

CP 14: Balance Due

Notice: This is sent to inform you that you have a balance due for one or more years.

CP 501: Reminder Notice, Balance Due

Letter: This is sent to inform you that you have a balance due and usually follows the CP-14 notice.
The tone is harsh, but the IRS will not take action at this time.

CP 503: Second Request Notice, Balance Due

Notice: This is sent to inform you that you still have a balance due on your account. As the name on the notice states, is is the second request telling you about your unpaid balance.

CP 504: Final Notice, Balance Due

Notice: This very important document informs you for one final time that you have a balance due on your account that needs to be resolved. Most times, this is the fourth notice that is sent and inform you that a levy will be issued against you. Also, a Federal Tax Lien may be filed.

LT11 or L1058: Final Notice of Intent to Levy

Letter: This formal document will be sent if you fail to answer the CP 504 by failing to take adequate steps to resolving your case. This letter informs you that you have 30 days to resolve the situation before the IRS levies your bank account(s), wages and any other assets they can locate.

CP 523: Notice of Default on Installment Agreement

Notice: If you are currently in an Installment agreement and you fail to IRS procedures, the IRS will send you this notice informing you that they are going to terminate your installment agreement. Reasons that the IRS will terminate the agreement include; you failed to make a payment, you did not file your tax return and or you have balances due that are not in your current agreement with the IRS.

To learn more go to http://www.wtaxhelp.com or send an e-mail to [email protected]