CP-2000 and CP-90 - IRS Notices That Require Immediate Action

There are a few notices from the IRS, which can change your life for years to come.  And there are those notices, which serve as a guide to your tax issues, or as information concerning your taxes.

 Below are four (4) IRS Notices, which will demand your immediate attention, and what to do if you can’t provide the IRS with the attention which they demand.

1.  CP-2000 - Notice of Under-reported Income - This notice lets you know that the IRS is changing your income tax return, because of all of your income was not included on your tax return.

This is a serious issue because, there is a thin line between under-reporting income and tax evasion.

If the IRS is incorrect in their calculations, than speak with a tax professional before signing and returning the CP-2000.  However, if you reported the income in another section of the return, or if you forgot about the income and did not include deductions, which pertain to the income, you may want to revisit your return and possibly file a 1040X.

The CP-2000 is usually 5 or 6 pages long and can be intimidating.  Contact a tax professional to help you respond to, a CP-2000.  It is NOT a good idea to sign and return the form, without fully understanding what you have signed.

2.   Notice of Intent to Levy - Notice CP-90/CP-297 - This is an, Intent to Levy, Notice.  You will have 30 days to respond.  If you have not filed previous years taxes, than you will need to file and pay the taxes owed, or request an Installment Agreement.

The CP-90 Notice, is the notice you don’t want to receive from the IRS.  Usually, this notice is sent using certified mail.  When a taxpayer has received this notice, it means, they have ignored the IRS, one day too many.

If you fear the IRS, or if you are depressed, and cannot respond to the IRS Notices, you may want to make an appointment with your medical doctor. Fear, and or depression, is not uncommon, among taxpayers who have not filed tax returns, or had major changes in their personal lives. Changes, such as lost of employment, loss of love ones, or a major illness in the immediate family, natural disasters, or being terminated from a job, or lost of a home, due to financial reasons.

If you owe the IRS a sizable amount, and have had any of the above circumstances in your life, or similar circumstances, you may want to forgo your pride and provide yourself with a possible way to eliminate penalties.