It becomes easy to ignore the constant flow of letters, but over time, when the tax debt becomes unpaid, the federal government automatically degenerates the account. In addition, when the responsibility is about to expire, tax authorities will try to use more threatening tactics to collect. Below are some of the messages the government will send in order throughout the collection process. CP-521 This note is a reminder that you had to pay a tax rate. It gives you a breakdown of your liability, but also the date on which you have to make payments. Be sure to send the payment before the due date in order to stay in good condition. If you can`t pay the full amount, call us at the number above to see if you`re eligible for a installment payment agreement. CP-501 This is one of the most common notifications sent. This message is intended to inform you of your outstanding taxes as well as the due date. We recommend that you start with a payment contract in instalments before further communications follow. Keep copies of all letters and communications you receive from the IRS, as well as documents you send to the Agency if you need to refer to this information in the future.
In general, the IRS decides to send you a registered letter by predefined guidelines and procedures. The IRS incorporates these policies and procedures into its Internal Revenue Manual (a guide that IRS staff members should follow, provided they know their own rules). Something important like the IRS decided to review you, you failed to sign a tax form, or the IRS sent you a letter called Final Notice, Notice of Intent to Levy, and Notice of Your Right to a Hearing because you didn`t pay your taxes despite several IRS collection notices. If you are not eligible for a payment plan through the online payment tool, you can still pay in installments. If you are unable to pay in full, you should send as much as possible with the notification and explore other payment methods. Tax payment options and other information on instalment payments are available on Topic 202.