The Internal Revenue Service's primary form of communication is done by mail and fax, and their review of returns is done by hand. This process causes a massive backlog at the IRS for processing returns, however, that may change over the next few years with the newly passed Infrastructure Act's $80 billion in funds. But what does that mean for tax payers?
The Internal Revenue Service has enacted a new policy that allows S Corporation to correct invalid S corporation elections. This new policy allows S corporations to make the necessary election to seek relief from the IRS after the proper returns have been filed.
The CP21C notice is used as a reply to taxpayers pertaining to a communication they've made to the IRS. It is a confirmation that the agency has made changes to your account based on the communication they received. If you received a CP21C notice, without communicating with the IRS, it is likely due to a mistake from the IRS. But don't ignore it, you may be eligible to claim credits on a past return.
If you've received a CP 14 Notice, don't panic, this is the Internal Revenue Services firs notice to you about an unpaid balance. Failure to respond to this notice either by establishing any payment options or consulting an attorney will result in the IRS taking collection action against you.
If you have an unpaid tax bill, the IRS will likely initiate collections action to retrieve the money they are owed. But not to worry, the IRS will not immediately start seizing assets or pulling money from your accounts. They will notify you of the collection action to be taken against the unpaid balance and you can work to set up payment arrangements towards the balance.
The CP504 Notices is to alert you to the unpaid taxes you have due immediately to the Internal Revenue Service. The letter will also serve as a notice of intent that the IRS could begin levying your accounts or other assets in an attempt to collect the balance due.
If you have foreign investments or accounts, you nay be responsible for filing a Report of Foreign Bank and Financial Accounts (FBAR). Failure to file may result in civil and criminal penalties.