December 31, 2009
Have you received a notice from the IRS? What should you do?

If you received a notice of any kind from the IRS, open it, read it, and do something about it. Most notices include a deadline for your response, so it’s important to be prompt. If you have questions, most notices have instructions on whom to contact for more information.

The IRS writes to taxpayers for many reasons. For example:
  • Your notice may request information that was missing from your tax return.
  • If your notice is about an examination or audit, you will be asked to produce certain information for the examination at a specific time and place.
  • Your notice may ask for payment of a tax bill.

Examples of other notices are:
CP 102: A math error was found on certain forms (such as 941, 942, 943, 944 or 945 returns) that you filed and the IRS believes that you owe more money.

CP 138: The tax you overpaid on one tax return was applied to another return where you owe tax.

CP 165: Your check for your Federal Tax Deposit (FTD) or estimated payment was returned. This notice asks for the payment, plus a bad check penalty of two percent.

CP 205: You used the wrong taxpayer identification number on your FTD coupon.

CP 2501: A discrepancy was found between what you reported as your income, credit or deduction and what the IRS record shows.

Whether or not you agree with the notice, call or write the person listed on the notice or visit your local IRS office before the deadline. It is important to let the IRS know that you are doing something about the notice.

Putting off contacting the IRS, especially in the case of notices requesting payment, can increase the amount you owe because penalties and interest keep accruing.

Topic: Advice