「report tax returns」Remember to understand these codes of the notice of tax arrears

Time: 2023-03-09 15:52

In the United States, there will always be different notices.
If we receive the notice of tax arrears, what actions can we take? What letter codes represent the notice of tax arrears?

01 What is the notice of tax arrears

The notice of tax arrears, also known as SNOD (Statistical Notice of Deficiency) and 90-day letter, is a statutory notice issued by the IRS to taxpayers.
When the taxpayer receives this notice, it indicates that the tax return of the taxpayer does not match the information recorded in the DIF system of the IRS, and then determines that the taxpayer has unpaid tax.
Some people may worry about whether I will immediately receive the notice of tax arrears as long as I owe tax? no, it isn't.
Generally speaking, the first notice and letter are intended to notify taxpayers to submit the missing tax return and require taxpayers to provide information related to the tax return as a supplement; Or the tax form notified to the taxpayer needs to be audited.
If the taxpayer fails to submit the tax form or fails to submit it according to the requirements of the IRS, the IRS will finally assess the taxpayer's tax liability and issue a notice of tax arrears.
In addition, when the IRS believes that taxpayers intentionally understate their income, want to pay less tax, or have the obligation to declare but do not declare, the IRS will also directly issue a notice of tax arrears.

02 What should I do after receiving the notice of tax arrears?

① Determination of approval of notice of tax arrears
Sign the notice of defense waiter (Form 5564) and pay corresponding taxes;
② Disagree, but do not want to file a lawsuit temporarily
Provide more supporting materials to the IRS and negotiate with the IRS to resolve disputes;
③ Disagree and file a lawsuit in the United States tax court
If you choose to sue the ruling of the IRS in the United States tax court, you have to file a lawsuit within 90 days of receiving the notice of tax arrears (the taxpayer can extend to 150 days when he is outside the United States).
The tax adjustment and collection procedures of the IRS can be suspended until the decision of the United States tax court is made;
④ Disagree and ignore
If there is no timely reply within the specified time, the IRS will directly issue a tax bill containing fines, overdue fines and overdue tax amounts, and will also start the mandatory collection procedure when necessary.

03 What are the common codes of the notice of tax arrears?

Letter 3219
A communication audit was conducted on the taxpayer. After requesting the taxpayer to provide supplementary information on a specific issue of the tax return, the two parties failed to reach an agreement.

Letter CP3219b
Enterprise taxpayers were judged to have underreported taxes.

Letter CP3219C
The taxpayer did not reply 4800C timely and accurately
The IRS will issue 4800C if the credit information of withholding tax and tax refund declared by the taxpayer is incorrect or there is false information.
When receiving 4800C or 4800C5, the taxpayer needs to reply within 30 days from the date of issuance.

Letter 531
After the on-site audit, the IRS and the taxpayer did not reach an agreement

Notice CP3219N
Personal tax declaration information does not match the information submitted to the IRS by a third party

Notice CP3219A
According to the information reported by the third party (W2&1099), the IRS found that there was a reduction in tax due to the underreporting of income by taxpayers.

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