CP91 – Intent to seize up to 15% of your Social Security benefits
CP298 – Intent to seize up to 15% of your Social Security benefits

The IRS has matched your Social Security number with Social Security benefits and now intends to levy your benefits. These are the final warnings. A resolution is required or your benefits will be seized. Once a Social Security levy is in place, it takes a minimum of three weeks to release.

CP501 – You have unpaid taxes

This notice is one of the initial balance due notices. You can fully pay the balance within 10 days to stop accruing penalties and interest. This notice is a request for payment.   Failure to respond will result in more aggressive contact.

CP503 – Second reminder: You have unpaid taxes for 2011

As its title implies, this is a second notice informing you that you owe back taxes. This notice has a 10-day deadline. Failure to pay the balance in full by the deadline can result in additional interest and penalties. Failure to respond will also result in increased attempts to contact you.

CP 501H Notice – You have an unpaid shared responsibility

This notice notifies the taxpayer of a Shared Responsibility Payment (SRP) that is now due. The SRP is assessed for failure to secure minimum essential health insurance for the taxpayer and his or her dependents, if applicable. This is a penalty for not having health insurance. Similar to the CP 501 notice, there is a due date for the balance. Payment must be received by the due date to ensure no additional penalties and interest accrues.

CP503H – Second reminder: You have unpaid taxes for 2011

As its title implies, this is a second notice informing you that you owe a Shared Responsibility Payment (SRP). This notice has a 10-day deadline. As mentioned previously, this is a penalty for not having health insurance. Failure to pay the balance in full by the deadline can result in additional interest and penalties. Failure to respond will also result in increased attempts to contact you.

CP504 – Notice of intent to seize (“levy”) your state tax refund or other property

This is one if the final notices before collection activity proceeds. Failure to respond can result in the levy of property such as, wages, other income, bank accounts, assets, and Social Security benefits. A resolution is required immediately.

CP523 – Intent to terminate your Installment Agreement (notice of intent to levy)

When more than two installment agreement payments are missed, the IRS will send this notice to inform you that the installment agreement is defaulting, and the IRS intends to seize property if the situation is not corrected. You can pay the past due amount to stop seizure, or you can adjust the payment plan.   A response is required.

CP2000 – Proposed changes to your Form 1040

This is a letter letting you know that the information that the IRS has regarding your income is not matching the return submitted. Usually, income was reported to the IRS that was not reported on your tax return. A table is provided to show you what others reported compared to what you reported. There is an opportunity to agree with the changes or to disagree with the changes.

CP3219A – Increased in tax and notice of your right to challenge (Notice of Deficiency)

This notice typically follows a CP2000. This letter lets you know that you are being assessed an additional tax and you have the right to appeal this decision. There are many reasons that this notice is issued. For example, failure to report the sale of a home, failure to report a retirement distribution or the applicable penalty, failure to report retirement income, failure to report self-employment income, etc.   You can file a petition with the U.S. Tax Court.

LT1058 (also known as LT 11) – Final intent to seize (“levy”) your property

This letter is the final notice of levy. The next step is to levy your accounts. The IRS is now searching for your assets, and may file a federal tax lien at any time. A resolution is required immediately. Failure to resolve your balance due can result in seizure of your wages, bank account, etc.

LT2800C – Incorrect Form W-4, Employee’s Withholdings Allowance Certificate

This notice is issued to the employer. The letter is issued when an employee is under withholding income tax. This notice is requiring the employer to withhold the taxpayer at a higher rate (usually at the single/zero rate). Once this notice has been issued, it is very difficult to reverse.