Understanding IRS Collection Notices
- How The Collections Process Works: The IRS sends collection letters and notices to taxpayers for various reasons. There are two types of notifications. Those you agree with and those you disagree with. Responding to the notification letters by the due date is essential to avoid more aggressive collection actions.
- Common IRS Notices: The guide lists various types of standard IRS collection notices, such as:
- CP 71C (Reminder of Overdue Taxes)
- CP 501/502 (Notice of Balance Due)
- CP 503 (Second Notice of Balance Due)
- CP 504 (Final Notice of Balance Due)
- CP 521 (Installment Agreement Payment Due)
- CP 523 (Installment Agreement Default: Notice of Intent to Levy)
- CP 90/CP-297 (Final Notice of Levy and Notice of Your Right to a Hearing)
- Letter 1058 (Final Notice/Collection Due Process Notice)
- Letter 3172 (Notice of Federal Tax Lien Filing & Your Rights to a Hearing Under IRC 6320).
- How To Respond To IRS Notices: It is crucial not to panic when receiving an IRS notice. However, ignoring the statements can worsen the situation. Seeking assistance from a tax professional who can guide you through the process and ensure the best possible outcome is recommended.
- How We Can Help With Your IRS Collection Notice?: Advocate Tax Solutions can assist with IRS collection activity. We offer services like removing tax liens and levies, preventing asset seizure, stopping wage garnishments, setting up installment plans, negotiating Offers in Compromise, filing unfiled tax returns, and defending tax audits.
Please note that individual tax situations can vary significantly. It’s always best to consult a licensed tax professional for personalized advice and assistance with IRS collections.
