Why did You Receive an IRS Notice?
You can find the reason in the IRS Notice itself. Whenever the IRS sends someone a notice, they include the reason, which generally includes seeking additional information, changing information that you provided on your tax return, or requesting payment.
If you need any help with your IRS notice, you can get in touch with our Tax Consultants.
The Most Common IRS Notices
There are more than 75 different types of IRS notices, but three are the most common.
Collection Notices
The IRS informs you that your business is about to shift into collection status, implying tax liens and levies for your business. You’ll receive a collection notice if you haven’t set up a payment arrangement with the IRS.
Underreported Notices
If you under-report your income on your tax return, then you’ll receive the underreported notices from the IRS. You can resolve the issue with the IRS by providing documents to back up your submissions. This particular notice can come with a fine of 20% on top of your current taxes.
Offset Notices
The IRS sends offset notices when it plans to withhold your tax return. Reasons for offset notices include unpaid taxes, due child support, unpaid student loan debt, etc. The withhold refunds may be used by the treasury offset program to cover your debts.
Don’t ignore a notice from the IRS. These notices are legal documents that may be used later against you if you don’t resolve the issue that got the notice issued against you in the first place. Feel free to reach out to our US Tax Consultants for help.
Common Questions About IRS Notices
The Internal Revenue Service (IRS) may send an individual a notice for various reasons related to their tax situation. Some of the common reasons are:
- The IRS has made a change or correction to the individual's tax return.
- The IRS needs more information or documentation from the individual to process their tax return.
- The IRS has identified a potential error or discrepancy in the individual's tax return or payment.
- The IRS has a question about the individual's claim for a credit or deduction.
- The IRS needs to verify the individual's identity or income.
- The IRS has not received the individual's tax return or payment by the due date.
A notice from the IRS does not necessarily mean that the individual has done something wrong or owes additional taxes. It is important to read the notice carefully and follow the instructions on how to respond. If the individual has any questions or concerns about the notice, they should contact the IRS as soon as possible.
If you’ve replaced your IRS notice, then you can get in touch with our Tax Consultants who’ll help you out with the process of retrieving your notice from the agency.
The IRS will take all the necessary steps to collect the debt that you owe, especially if the notice relates to unpaid taxes or misleading information. The IRS can seize your assets such as bank accounts and property in order to get the due amount.
That depends on the type of notice you’ve received. A general notice with information isn’t anything to be much concerned about. But if the notice concerns tax payment or the information that you provided on your return, then you should definitely get help from professionals. You can talk to our US tax consultants to better understand the implications of the IRS notice.
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