by Victory Tax Solutions on October 9, 2013 in Blog
If you owe money on unpaid federal taxes the IRS will mail you various notices outlining (1) the issue, (2) required response, and (3) how much time you have to respond. Below I have outlined some of the most common IRS notices for collecting unpaid taxes.
Keep in mind that depending on the IRS Agent, these notices may appear in different orders or as different notice numbers.
CP14 Notice (You Owe Federal Taxes)
Issue: You have an outstanding tax liability.
Response: Contact the IRS to pay the amount in full or enter into a tax debt resolution.
How much time: Deadline to pay the amount or to make payment arrangements is listed on Notice.
CP503 Notice
Issue: The IRS has not received your response to a prior notice and you still owe money to the IRS.
Response: Contact the IRS to pay the amount in full or enter into a tax debt resolution.
How much time: You have 10 days from the Notice date to avoid additional penalties and interest.
Note!!!!: The IRS has authority to file a notice of tax lien if (1) you fail to pay in full, or (2) enter into a tax debt resolution that will not achieve full pay of the debt in a specified amount of time.
CP504 Notice (State Tax Refund Levy; Intent to Levy Other Property)
Issue: The IRS has not received your response to a prior notice and you still owe money. The IRS will issue a levy against your state tax refund. The IRS will also start searching for your other assets to levy.
Response: Contact the IRS to pay the amount in full or enter into a tax debt resolution.
How much time: Deadline to pay the amount or to make payment arrangements is listed on Notice.
Note!!!!: After your state tax refund is seized and if you still have a tax liability, the IRS has authority to initiate a levy on your other property (wages & other income, SSI, bank accounts, home, car etc). The IRS can also file a notice of tax lien.
LT 11 (Letter 1058) (Final Notice Prior to Levy)
Issue: The IRS has not received a response to a prior notice and you still owe money. The IRS intends to levy your assets.
Response: Contact the IRS to (1) pay amount in full, (2) enter into a tax debt resolution, or (3) request an appeal
How much time: 30 days after the date of this letter.
For more information, please visit the IRS website:
http://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter
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