IRS Notice Help — Expert Guidance for Every IRS Letter
Understand, Respond, and Resolve Your IRS Notices with Confidence
Got an IRS Notice? Don’t Panic — But Don’t Ignore It Either
Every year, the IRS sends hundreds of millions of notices to taxpayers. Some are routine; others signal the beginning of a serious collection or audit process. Regardless of which one you’ve received, the worst thing you can do is ignore it. At HofflerSmith Financial Services, our Enrolled Agents help taxpayers in Cherry Hill, NJ understand exactly what their IRS notice means — and what to do about it.
Most Common IRS Notices We Help With
- CP14 — Balance Due: The IRS’s first notice that you owe money. Typically sent within a few months of filing. Options include full payment, payment plan, or dispute if the amount is wrong.
- CP2000 — Underreported Income: The IRS received income information (1099s, W-2s) that doesn’t match your return and is proposing additional tax. You have the right to agree, dispute, or provide explanation.
- CP504 — Intent to Levy: A serious notice indicating the IRS intends to seize your state tax refund and possibly other assets. Immediate action required.
- LT11 / Letter 1058 — Final Notice of Intent to Levy: The IRS’s last warning before collection action begins. You have 30 days to request a Collection Due Process hearing — missing this deadline severely limits your options.
- CP90 / CP297 — Notice of Levy on Social Security: The IRS can levy up to 15% of your Social Security benefits. This notice means they’re about to do it.
- Letter 525 / 915 / 531 — Audit Notices: Various letters indicating your return has been selected for examination. Response deadlines and procedures vary.
- Letter 1153 — Trust Fund Recovery Penalty: Sent to business owners and responsible parties for unpaid payroll taxes. Personal liability can be assessed if not addressed promptly.
What to Do When You Receive Any IRS Notice
- Read it carefully — Identify the notice number (top right corner), the tax year it refers to, and any deadlines mentioned.
- Don’t respond until you understand it — Responding incorrectly or too quickly can make things worse. We review your notice before any response is sent.
- Verify the information — IRS notices sometimes contain errors. We cross-reference the notice against your return transcripts and IRS records.
- Meet your deadlines — Most IRS notices have response windows (30 days, 60 days, 90 days). Missing them forfeits important rights.
- Get professional representation — As Enrolled Agents, we’re licensed to represent you before the IRS at every level — collections, audit, and appeals.
Serving All of South Jersey
We serve taxpayers throughout Cherry Hill, Camden County, Burlington County, and the greater South Jersey area. Whether you received your notice yesterday or six months ago, call us today — most situations are resolvable, and the sooner we get involved, the more options you have.
Got an IRS Notice? We Can Help.
| IRS Notice | What It Usually Means | Urgency | Typical Deadline | What to Do Next |
|---|---|---|---|---|
| CP14 | First balance-due notice | High | 21 days from notice date | Pay, set up a payment plan, or dispute the amount with documentation |
| CP501 | Second reminder — balance from CP14 still unpaid | High | Immediate | Act now before escalation; penalties and interest are growing daily |
| CP503 | Third reminder — IRS about to escalate to CP504 | Very High | Immediate | Contact the IRS or a tax representative before levy action triggers |
| CP504 | Final notice before levy — IRS intends to seize state refunds and property | Very High | No printed date — IRS can act at any time | Do not ignore; contact a tax representative immediately before levy begins |
| CP2000 | Proposed tax change — income does not match third-party reports | High | 60 days from notice date | Compare IRS records to your return; respond agreeing, partially agreeing, or disputing with documentation |
| LT11 / Letter 1058 | Final Notice of Intent to Levy — IRS authorized to seize wages and bank accounts | Critical | 30 days to request CDP hearing (Form 12153) | File Form 12153 within 30 days to stop the levy and preserve appeal rights |
| Letter 1153 | Proposed Trust Fund Recovery Penalty — personal liability for unpaid payroll taxes | Critical | 60 days to appeal | Get representation before responding; personal assets are at risk |
| Letter 531 (90-Day Letter) | Notice of Deficiency — IRS formally proposed additional tax after audit | Critical | 90 days to petition Tax Court | Pay or petition the U.S. Tax Court within 90 days; missing this deadline lets the IRS assess without further notice |
| CP2501 | Early income discrepancy — IRS asking you to reconcile before issuing CP2000 | Medium | 30 days from notice date | Gather records and respond; easiest point to resolve before it becomes a formal proposed change |
| CP523 | Installment agreement default — payment plan lapsed due to missed payment or unfiled return | Very High | 30 days before IRS terminates agreement | Reinstate immediately or renegotiate; default re-exposes all original collection actions |
| LT38 | Currently Not Collectible Reminder | Balance reminder — CNC status; debt still accruing | Low | |
| Letter 4464C | 60-Day Refund Review Hold | Refund frozen while IRS verifies return; not an audit | Medium |
Not sure which notice you received? Look in the upper right corner of your IRS letter — the notice number is printed there. HofflerSmith Enrolled Agents handle all of the above and more. Call (856) 740-4912 or schedule a free consultation.
Understanding IRS Notices
Receiving a letter from the IRS can be alarming, but not every notice is cause for panic. The IRS sends millions of notices each year for a wide variety of reasons, from simple math corrections to audit notifications to balance due reminders. Understanding what your notice means is the first step toward resolving it properly. At HofflerSmith Financial in Cherry Hill, we specialize in helping South Jersey residents and businesses respond to IRS notices quickly and effectively.
Common Types of IRS Notices
CP2000 (Underreported Income): This notice means the IRS received information from employers, banks, or other third parties that does not match what you reported on your tax return. It is one of the most common notices and often involves 1099 income, investment earnings, or retirement distributions. You have the right to agree, partially agree, or dispute the proposed changes with supporting documentation.
CP14 (Balance Due): This is the first notice the IRS sends when you owe taxes. It shows the amount due including any penalties and interest. You typically have 21 days to pay in full or set up a payment arrangement to avoid additional collection actions.
CP501 through CP504 (Collection Notices): These are escalating reminders that you have an unpaid tax balance. The CP504 is particularly important because it is the final notice before the IRS can levy your state tax refund or other assets. If you receive a CP504, you should contact a tax professional immediately.
Letter 525 or 566 (Audit Notification): These letters inform you that your tax return has been selected for examination. They specify which items the IRS wants to review and what documentation you need to provide. Having professional representation during an audit is strongly recommended.
What to Do When You Receive an IRS Notice
First, do not ignore it. Every IRS notice has a response deadline, and missing that deadline can result in automatic assessments, additional penalties, or escalated collection actions. Read the notice carefully to understand what the IRS is asking for and when your response is due. Do not call the IRS until you have reviewed the notice and gathered relevant documents, as you want to be prepared for any conversation.
Second, gather your records. Pull your tax return for the year in question along with any supporting documents such as W-2s, 1099s, receipts, and bank statements. Compare what the IRS is claiming with your actual records to determine whether the notice is accurate.
Third, consider contacting a tax professional. Even seemingly simple notices can have implications that are not immediately obvious. A qualified tax professional can review the notice, assess your options, and craft a response that protects your interests. At HofflerSmith Financial, we offer free initial consultations for IRS notice review.
How HofflerSmith Financial Helps with IRS Notices
Our process begins with a thorough review of your notice and related tax records. We identify the exact issue, evaluate whether the IRS position is correct, and develop a response strategy. If the notice is accurate, we help you understand your payment options and negotiate the most favorable terms. If the notice contains errors, we prepare a detailed response with supporting documentation to dispute the IRS claims.
We handle all correspondence and communication with the IRS on your behalf, ensuring deadlines are met and responses are properly formatted. Our team has resolved thousands of IRS notices for clients throughout Cherry Hill, Moorestown, Voorhees, Haddonfield, and the greater South Jersey area. We know which notices require urgent action and which ones can be resolved with a simple written response.
Penalties and Interest on IRS Notices
Most IRS notices include penalties and interest charges that can significantly increase the amount you owe. Common penalties include the failure-to-file penalty (up to 25 percent of unpaid taxes), failure-to-pay penalty (up to 25 percent), and accuracy-related penalties (20 percent of the underpayment). Interest compounds daily on any unpaid balance.
The good news is that many penalties can be reduced or eliminated through penalty abatement. If you have a reasonable cause for the late filing or payment, such as a serious illness, natural disaster, or reliance on incorrect professional advice, the IRS may waive the penalties entirely. First-time penalty abatement is also available if you have a clean compliance history for the prior three years. HofflerSmith Financial evaluates every client case for penalty abatement eligibility as part of our notice resolution services.
Preventing Future IRS Notices
The best way to deal with IRS notices is to prevent them from happening in the first place. Common causes of IRS notices include unreported income, math errors on returns, missing or incorrect Social Security numbers, and filing with outdated information. Working with a professional tax preparer significantly reduces the likelihood of receiving a notice.
At HofflerSmith Financial, our tax preparation process includes cross-referencing all income sources, verifying calculations, and reviewing returns for common audit triggers before filing. We also recommend keeping organized records throughout the year and reporting all income, even from side jobs or freelance work, to avoid CP2000 notices. If you do receive a notice despite these precautions, our team is ready to help you respond quickly and resolve the issue with minimal stress.