May 31, 2017

Common IRS Collection Notices and What they Mean

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Did you receive an IRS Collection Notices in the mail? If so, you either (1) opened it immediately as you had to know what the problem was or (2) refused to open it as you were hoping that the problem would go away on its own. Once you finally read the IRS Collection Notice, you may be left wondering what the notice actually means. Here is a short description of some of the most Common IRS Collection Notices and what they mean.

  1. The CP215 is a Civil Penalty Assessment notice – IRS Notice cp215 tells Business Taxpayers that a civil penalty has been assessed, i.e., a civil tax penalty has been recorded on the IRS’s books and records for your business’s account.
  2. The CP015 Civil Penalties Notice – IRS Notice CP015 is similar to the CP215 notice (above) but it is issued to individual taxpayers. This notice is intended to notify individual taxpayers that a civil penalty has been assessed, i.e., recorded on the IRS’s books and records for your account. It also includes an explanation as to why the penalty was assessed.
  3. CP128 Balance Due After Offset notice – IRS Notice cp128 tells business taxpayers that payments collected by the IRS did not fully satisfy the balance due and an additional amount is due.
  4. CP039 Overpayment Applied to Balance Due, Secondary SSN notice – IRS Notice CP039 tells individual taxpayers who file joint tax returns that their refund for one tax year has been applied to the balance due for a joint tax return for another tax year.
  5. CP049 Overpayment Adjustment-Offset notice – IRS Notice CP049 tells individual taxpayers that a tax refund was applied to a prior year’s tax debt.
  6. CP021 Notice of Data Processing Adjustment or Examination – IRS Notice CP021 tells individual taxpayers that a tax adjustment was made to their tax return.
  7. CP210 Audit/Data Processing Tax Adjustment notice – IRS Notice CP210 tells business taxpayers that there was a tax adjustment made to their tax return resulting in a refund of $1.00 or more or a zero balance. It can also be used to tell business taxpayers that penalties have been assessed.
  8. CP220 Audit/Data Processing Adjustment notice – IRS Notice CP220 tells business taxpayers that a tax adjustment was made resulting in a debt of $1.00 or more.
  9. CP503 Individual Master File 2nd Notice, Balance Due notice – IRS Notice CP503 tells individual taxpayers know that they need to act as no contact was received from the IRS’s prior notices and the unpaid balance is still outstanding.
  10. CP504 Final Notice, Balance Due notice – IRS Notice CP504 tells individual and business taxpayers that payment has not been made and that the IRS may levy on the taxpayer’s assets.
  11. CP504B Final Notice, Balance Due notice – IRS Notice CP504B is provided to business taxpayers who request a copy of a previously issued CP504.
  12. CP090 Final Notice of Intent to Levy and Notice of Your Right to a Hearing notice – IRS Notice CP090 tells individual taxpayers that the IRS intends to levy on the taxpayer’s assets. It instructs the taxpayer to request a collection due process hearing request to have the IRS Office of Appeals consider the case.
  13. CP297 Notice of Intent to Levy and Notice of Your Right to a Hearing notice – IRS Notice CP297 tells business taxpayers that the IRS intends to levy on the taxpayer’s assets. It instructs the taxpayer to request a collection due process hearing request to have the IRS Office of Appeals consider the case.

Do you owe the IRS? We are former IRS Attorneys, appeals officers, and auditors who help taxpayers with Unpaid Tax Debts. Call today for a confidential consultation. Our number is 713-909-4906.

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