Receiving any type of mail from the IRS can be alarming, but if it comes through certified mail, you may assume your business is in trouble or something serious is happening. That may be true – but don’t panic. Nearly every IRS notice gives you some time to respond.
As long as you open the letter, review it carefully, and take action immediately, you can likely avoid serious consequences. In contrast, if you ignore the notice, you may face severe unintended consequences that vary drastically depending on the type of notice and the tax problem involved.
In this post, we walk through why the IRS sends certified mail, the types of letters and notices you may receive, what they mean, and what you can do next. If you still have questions or want guidance, contact the tax professionals at Resolución fiscal 20/20.
Key Takeaways
- Certified mail from the IRS is serious – don’t ignore these letters.
- The IRS may send certified letters about tax liens, tax levies, payment plan termination, tax penalties, and legal actions.
- Other certified letters may request identity verification or tax return confirmation.
Why Did I Get Certified Mail from the IRS?
The IRS sends out a range of letters and notices to taxpayers all the time. These could be related to missed filing deadlines, unpaid taxes, tax penalties, and more. Not all notices are required to be certified, but some, like Notice 3219 or CP523, are certified.
If the IRS has tried to contact you repeatedly, and you’re now facing legal charges or liens and levies, your IRS mail could be certified since it is more serious.
How will you know if an IRS letter is certified? There are a few indicators, including an extra mailing receipt that’s sent back to the IRS, an electronic tracking component, or a requirement that you sign for the letter. This means certified mail can’t be left with your normal mail in your mailbox.
Certified IRS mail clearly indicates that you need to pay special attention to whatever the notice says. But, these letters don’t always mean that you’re in big trouble with the IRS. Open the mail promptly, and if you’re not sure what to do, ask a tax expert.
What IRS Notices Are Sent via Certified Mail?
You usually won’t receive any certified IRS mail out of the blue. You will likely have received several notices or letters prior to anything certified, such as notices that you missed a tax payment or deposit for your business or you are being charged a tax penalty related to your business or individual tax return.
Here are a few common IRS notice categories that may be certified mail:
Final Notices
If you’ve ignored prior IRS notices that indicate you need to pay taxes or file your return, you may get an IRS final notice before they take more serious actions. For example:
- Notice CP90, LT1058, or Letter LT11: These documents are notices of the IRS’s intent to levy, meaning if you don’t act now, they could seize your property.
- Notice of Federal Tax Lien: This is a notice that the IRS has filed a lien on your property, meaning it’s public record for others to see. If you get this notice, you usually have 30 days to pay off your debt so the IRS will release the lien.
Failing to do anything when you receive these notices could lead to asset seizure, which could include your property or financial assets.
Proposed Tax Assessments
In certain cases, the IRS will assess taxes against you based on information it receives from other parties. Here are two notices to be aware of:
- Statutory Notice of Deficiency, CP3219A: If you didn’t file a tax return but you should have, the IRS may file a substitute for return (SFR), which provides a tax assessment. You will have 90 days to respond to this notice with your filed tax return, or else the IRS will charge you with the listed amount. Note that SFRs don’t account for any credits or deductions you may qualify for.
- Letter 1153, Proposed Trust Fund Recovery Penalty: The IRS sends you this letter if it has deemed you liable for payroll taxes that have yet to be paid. Letter 1153 lets you know that you’ve been assessed with the penalty for this lack of payment, which is equal to the amount of the trust fund portion of payroll taxes owed tax.
Termination of an Installment Agreement
If you default on your acuerdo de pago a plazos, the IRS will send you Notice CP523, which may come via certified mail. This notice informs you that the IRS is terminating your installment agreement because you failed to comply with the terms. If you want to reinstate the plan, follow the instructions on the notice to make your payment and try to get it put back in place.
Verification of Your Identity or Information
The IRS may need to verify your identity before it can process your return and send a refund. You may receive Letter 5071C via certified IRS mail if you need to provide additional information, such as your ID or other documents. Follow the instructions carefully to avoid further delays.
The IRS may also have questions about your tax return that it wants to confirm before processing. You could receive Notice CP2000 that requests additional information to account for discrepancies. Always respond quickly to these notices.
Tips for IRS-Certified Mail
Getting an IRS-certified letter isn’t the end of the world, and you have recourse if you act quickly and know the proper next steps. Here are strategies to deal with this type of mail:
Never Ignore Certified IRS Notices
First, don’t simply do nothing. If you don’t respond and pretend like the letter never came, the IRS will move forward with more serious actions, such as seizing your assets, assessing taxes against you, or failing to process your return.
Review the Notice Carefully
Figure out exactly why you received the notice and what the IRS could do if you don’t respond. This will all be outlined in the letter. You can also use the IRS’s online resources to look up the notice type or speak with a tax professional about what it means. Pay close attention to any potential amounts owed and deadlines.
Respond Quickly
Most IRS notices provide some kind of timeline for your response. You may need to pay a penalty within a certain time frame to avoid additional penalties or respond to an SFR notice so you’re not assessed too much tax. Act quickly so you can take care of the matter promptly.
Gather Your Records
Review the information provided against your business’s tax returns and other tax records. Make sure you understand how the IRS arrived at the information provided. If something is off, you may need to call the IRS or speak with an expert.
Appeal If You Don’t Agree
If the IRS has incorrect information, you may be able to file an appeal against the information provided in the notice. Read the instructions in your letter to see what to do and who to contact if you don’t agree. A tax professional at 20/20 Tax Resolution can help you assess the situation and file an appeal when necessary.
Why Aren’t All IRS Notices Certified?
Every IRS notice is worthy of your attention and review and fast response. So why are only some notices sent via certified mail, and others aren’t?
When the IRS is further down the collections process, notices become more serious, since failure to do anything could lead to steep penalties, asset seizure, and legal action. These matters require the IRS to confirm that you received a notice so they are able to move forward with these actions. The IRS must have proof of delivery to show you were informed.
Notices about issues like a first missed tax deadline or a small penalty for missing an estimated tax payment are usually sent through the regular mail since they are the first notices you’ll receive and they remind you of compliance requirements. But once a matter escalates, you may get certified mail from the IRS.
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Estamos comprometidos a encontrar solucionesLearn MoreWhen Should I Seek Professional Help?
Some certified IRS mail may have a straightforward solution that you can handle on your own. Perhaps you just need to remit payment, and doing so will resolve the issue. You also may be able to contact the IRS directly using the number on the notice to verify your identity or confirm details.
However, even these smaller issues may be confusing to many taxpayers. It’s a good idea to work with a tax professional if you:
- Don’t know why you received the notice
- Don’t agree with the information provided
- Can’t afford to pay the balance on the letter
- Owe a very large amount to the IRS
- Can’t meet the provided deadline
A tax professional understands tax notices and IRS processes. They will be able to review your notice quickly and provide the best next steps to get your matter taken care of quickly.
Why 20/20 Tax Resolution?
If you or your business received certified IRS mail, don’t panic. There is a reason for the letter or notice, and there are always ways to get the matter resolved as long as you act promptly.
The team at 20/20 Tax Resolution provides expertise in business taxes and other areas, ensuring you have assistance when you’re facing tax liens, tax levies, tax penalties, payroll tax issues, and sales tax problems. We will help you find the right form of tax relief to protect your assets and your business moving forward.
Contactar con 20/20 Tax Resolution to set up a consultation, or call 877-369-5420 to speak to a tax expert right away.
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