Have you received a CP501 notification from the IRS? The experts at Optima Tax Relief reviews what you should do next.”
If you are one of the many Americans who find themselves owing money to the IRS come tax season, you are not alone. While many of us look forward to receiving a refund from the IRS after filing our taxes, others find themselves in a position where they end up owing money to the IRS. So what can you expect if this is the case? The experts at Optima Tax Relief review one of the key forms you can expect to get from the IRS if you end up owing tax money.
A CP501 Notice is sent to taxpayers directly from the IRS as the official communication notice to inform the taxpayer that they have a balance due on one of their tax accounts. Once you receive this notice, it is important to read it carefully, take note of the total amount due, the due date, and your payment options. While interest does accrue on the outstanding debt, there are payment plan options available through the IRS’ Online Payment Agreement Application. It is important to understand that in addition to interest accrual, your outstanding tax debt could also be subject to additional late penalty fees.
The most important thing you can do is to stay on top of your debt and in contact with the IRS. While you may be tempted to put off addressing your IRS tax debt, it is always advantageous to immediately work with the IRS to manage your outstanding balance. Ignoring a CP501 Notice could result in serious consequences, such as a lien on your property. If you feel the CP501 was sent to you in error, contact the IRS immediately.
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