IRS Letters Explained
IRS Letters Explained
I was searching for information on a letter I’ve received from the IRS and I found some very useful information on the website of Joe Mastriano CPA, here’s a interesting quote from his website at www.taxproblem.org:
Letter 692 - Request For Consideration Of Additional Findings
This IRS tax letter comes with proposed adjustments to your tax return. It gives you courses of action. You can sign it, or request an appeal. Be careful, you usually have less than 15 days from your receipt of the letter, to take action.
Letter 1058 - Final Notice Of Intent To Levy And Notice Of Your Rights To A Hearing. Please Respond Immediately.
If you received this notice, it means you owe tax and have ignored Letter 2050. This is one the most serious collection attempt notices the IRS sends to a taxpayer owing tax. It must be responded to or you will lose appeal rights and the IRS will levy anything they can find. As always prepare a preliminary financial statement to know where you stand before contacting the IRS.
Letter 1085 - This Is A 30 Day Letter To Protest An Assessment On A 6020b.
This is a 30 day letter to protest an IRS tax assessment on a 6020B, which is the IRS code for a payroll report they filled out and filed for you. Don’t just accept their figures, even if they are close to the actual amounts. Your 941 payroll reports must balance to the 940, the state reports, W-2’s, etc. At a minimum, you must see that the total gross wages for the year is the same for each report. Hire a professional to help you if you can’t do this on your own. You can search this page for information on other IRS tax letters if needed.
Letter 1153 - Trust Fund Recovery Penalty
The remaining FICA and withholding not collected from the business is now being charged to you. Very serious. Different regions of the country rely on different court rulings to settle some disputes. Basically you must show that you didn’t have authority to direct the company’s funds and that you did not have knowledge of the taxes not being paid. You should send the R.O. your appeal along with your proof that you are not liable, just in case they don’t agree with you. It shows that you are very serious. Many people will wait on this part until it is absolutely necessary. Sometimes R.O.’s will chase everyone who has signature authority on the bank account, any stockholder, any signer of a tax form, or listed officer, and then leave it up to you to defend yourself.
Joe has a lot of many other IRS letters and notices explained on his website, also, if you’re getting letters from IRS, you should check out his site and get well informed.