Tax Problems

Offer in Compromise: Pay the IRS Less Than What You Owe

An offer in compromise allows you to pay less than the full amount that you owe in satisfaction of a tax debt. OICs are often marketed as settlements for “pennies on the dollar,” but there is actually a rigid set of rules that determine if you’re eligible and how much you need to pay.

CP501 Notice: Reminder of Money Owed to the IRS

A CP501 notice is a reminder that you owe money to the IRS. You should have already received a CP14 or other notice stating that you have a balance due. A CP501 means that the IRS still has not received your payment and is getting closer to taking further collections action.

CP13 Notice: What Does it Mean and How Should You Respond?

If you’ve received a CP13 notice, it means the IRS made changes to your return that did not change what you owe. This might be because you weren’t using the full amount of a non-refundable tax credit or because you had a large enough deduction to keep your income in the 0% bracket.

CP161 Notice: You Owe Unpaid Taxes

A CP161 notice is a bill from the IRS when you owe unpaid taxes. One of the most common situations is if you filed a return with taxes owed but didn’t make a payment at the same time. You may also receive a CP161 notice after the IRS previously notified you it made changes to your return.