Hyden, Miron & Foster, PLLC Law Blog

Monday, May 18, 2015

5 Common Notices From the IRS (And how a tax attorney can help)

The IRS is notorious for sending out millions of notices each year. The following are some of the most common notices and disputes asserted by the IRS, followed by practical advice for those unwittingly on the receiving end of IRS correspondence. 

#5: CP01B Notice: Probably the tamest of the bunch, this notice simply describes some missing information necessary for processing. If you receive one of these, simply log on to the IRS website or call, and the issue should be resolved quickly. Don’t delay. as most correspondence includes a response deadline. 

#4: CP11 Notice: This notice will arrive if the IRS believes you miscalculated your taxes and owe additional money. This notice may also be accompanied by an underpayment penalty if the discrepancy represents a certain percentage of your adjusted gross income (AGI). If you are facing a sizable tax bill and believe the IRS may be in error, check with your accountant first. If the dispute cannot be resolved, a tax attorney can help you properly dispute the IRS’s adjustments. 

#3: LT14 Notice: If you owe outstanding taxes do not avoid the problem; the IRS will not go away – ever. An LT14 notice asserts that agents have been trying to reach you and have been unable to do so.  The IRS offers options for payment of your tax liability - online payment agreement, installment agreement, and offer in compromise. However, avoiding payment of the tax liabilitywill only make it worse, and the IRS will have no choice but to file a tax lien. 

#2: Personal Audit: Personal audits are rare, and often come about in the context of high-earning, high-deducting individual taxpayers. We highly recommend seeking representation for assistance with your tax audit, especially if the IRS is alleging significant discrepancies. Sometimes, the audit will reveal very minimal issues – or none at all. 

#1: Business Audit: Like an individual audit, a business audit will generally come about if the IRS believes a company may be underreporting, sheltering assets, or engaging in fraudulent measures to avoid tax liability. Working with a trained tax professional through the process will be vital in achieving a workable outcome.

The worst thing you can do when you receive an IRS notice is to do nothing. The experienced tax law team at Hyden, Miron & Foster, PLLC can help. For more information, call (501)482-1787 or (888)770-1848. We have offices in Little Rock, Conway, or Hot Springs Village.


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