You have several options if you’re having a problem with the IRS. These include:
When cash flows are tight, some small businesses treat late income tax payments as a loan from the IRS. If you try to do the same thing with payroll taxes, you could soon find yourself in serious trouble.
If you’ve received a CP11A Notice, the IRS believes you made a mistake when claiming the Earned Income Tax Credit and owe additional tax. You can either pay the requested amount or disagree with the changes.
IRS Notice CP09 notifies you that you may be entitled to claim a refundable Earned Income Tax Credit on your previously filed taxes. You’ll need to fill out the worksheet enclosed with the notice to verify your eligibility.
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.
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.
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 525 is known as a 30-day letter because it gives you 30 days to appeal the results of an IRS audit or examination. The letter outlines proposed changes to your return and how much you will owe if you accept the changes.
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.