Tax Problems

CP2000 for a Backdoor Roth Conversion

If you’ve received a CP2000 notice for a backdoor Roth conversion, there’s a good chance you haven’t done anything wrong. Although this is a legitimate tax move, the IRS forms for retirement account transactions weren’t designed to handle it. You’ll need to provide an explanation to the IRS to get things sorted out.

IRS Penalties Overview

Taxpayers are responsible for getting their own tax returns right, or they may face penalties from the IRS. Here’s an overview of the most common types of penalties, when they apply, and how much they could cost you.

What Are the Different Kinds of IRS Audits?

When you think of an IRS audit, you probably think about scary letters from the IRS followed by potential penalties. What you may not have realized is that there are different kinds of audits. Here’s an overview of them and what they involve.

Letter 531: The IRS Adjusted Your Return and You Owe Money

IRS Letter 531 notifies that the IRS has adjusted your return following an audit and you owe money. You may no longer appeal to the IRS because you either missed the deadline to appeal or lost your appeal. Your only remaining options are to accept the decision or file a petition with the United States Tax Court.