Tax Defense Network: IRS Notice on Back Taxes & You

 

Tax Defense Network believes it is in the best interest of a taxpayer to communicate with the IRS if they owe back taxes. The IRS has the power to satisfy a tax debt through the seizure of property and assets if the taxpayer does not attempt to resolve the debt. Tax Defense Network explains that the IRS keeps taxpayers informed about how much money is owed, their current proceedings, and their future actions through CP notices and letters.

Tax Defense Network: CP-Notices for Clearing Back Taxes

Tax Defense Network informs taxpayers about the CP notices they can expect to receive from the IRS if they have tax debt. CP-71, CP-71A, CP-71C and CP-71D are notices that you receive to remind you of the amount you owe in taxes, penalties, and interest.

If you have a balance due on one of your tax accounts, you might receive notice CP-501. The letter will explain your payment options. Tax Defense Nework states that taxpayers will need to pay the amount owed by the date on the notice.

Tax Defense Network briefs taxpayers on the CP notices the IRS sends regarding the various IRS resolution programs. Notice CP-521 will remind you that you have an Installment Agreement payment due, and requests payment immediately.

Notice CP-523 informs you of the intent to terminate your Installment Agreement because of default, and explains levy procedures.

Notice CP-161 will request payment for the unpaid balance of tax due. Tax Defense Network informs that the severity of a CP notice will depend upon how much back taxes are due, how long the tax debt stays unpaid, and how much effort the taxpayer makes in resolving the debt.

Tax Defense Network: Get Help

Tax Defense Network always advises taxpayers who have complicated tax issues to consult tax experts. For initial queries, you can call the IRS’ toll-free number listed on the notice. Tax Defense Network also advises taxpayers to authorize someone to contact the IRS on your behalf, such as a tax professional, by using Form 2848 Power of Attorney and Declaration of Representative. Tax Defense Network suggests low income taxpayers to contact the IRS to get help from a Low Income Taxpayer Clinic or taxpayers with a lower debt amount to contact the Taxpayers Advocate.

Tax Defense Network advises taxpayers to call the IRS regarding their tax queries. You might need to take the services of a tax resolution company or a tax professional for resolving the tax debt issue, as it requires careful and in-depth study and knowledge of tax laws, IRS programs and policies, and negotiation skills. To ensure a successful resolution and stop the CP notices from appearing in your mailbox, it is important to act fast.