Tax Law Attorney in Tampa, Florida

Understanding the IRS Balance Notice - by Nehemiah Jefferson, Esq.

Even when a taxpayer knows that he or she owes the IRS, receiving a balance due notice in the mail can bring a level of discomfort. Not long after the taxpayer has been assessed, the IRS begins to send out notices of the tax due.

The first correspondence sent by the IRS will provide notification of the balance due. If you fail to pay the amount owed, the second notice you can expect to receive is CP501. This notice reminds that you have a balance due. Failure to satisfy your tax bill at this point will lead to the IRS sending a second reminder notice (CP503) of the balance owed.

If you receive notice CP504, this is an urgent final notice to pay. The IRS is preparing to use an alternative method of collection. Lastly, the IRS will issue LT-11, a notice of intent to levy or Letter-1058.

As you can surmise, significant time and opportunity has to elapse prior to the IRS taking serious action to collect what may be owed. Consider hiring a tax attorney the moment you receive a notice for which you cannot pay.

Nehemiah Jefferson, Esq., is Managing Principal of The Jefferson Firm, LLC. The taw law firm, provides comprehensive Tax Preparation, Tax Representation, Tax Litigation, and Tax Consultation services to individual and small business clients. He earned his Bachelor’s degree from The Florida State University and his Juris Doctor from John Marshall Law School (Atlanta). Attorney Jefferson is licensed to practice law in the State of Florida, The District of Columbia, and is a member of the United States Tax Court Bar. He is also an IRS Enrolled Agent and may be reached at (813) 328-7322.