Minnesota: Understanding IRS Small business Notices
Updated: Aug 23
The IRS issues out several notices. My goal is to cover common notices that a taxpayer or business might have received. It is important to open the mail and understand what the IRS is trying to communicate to the taxpayer. Here are other common notices:
The IRS charged the S Corporation or partnership a penalty for failure to file the 1120S or 1065 tax return. This penalty is $195 for each person who is a shareholder/partner at any time during the tax year, for each month or part of month the return was late, for up to 12 months.
The IRS has issued a notice of levy to collect unpaid federal tax. They issued this levy because they still haven’t received a full payment despite sending several notices about the overdue taxes. This letter is also notification of the taxpayers' right to request an Appeals hearing (under Internal Revenue Code (IRC)Section 6330(f)).
Because the taxpayer is a federal contractor, they were not given the right to a pre-levy hearing (Internal Revenue Code section 6330). However, they can appeal the levy of their assets by requesting a Collection Due Process hearing within 30 days from the date of the notice.
The IRS credited payments and/or other credits to your tax account for the tax period shown on the notice. However, they haven't received your tax return. If you don’t respond quickly the IRS may keep any refund due to you after the statute for refunds expires. This is 3 years from the return due date and any other extensions.
The IRS hasn't received a tax return for a specific tax year. The statute of limitations to claim a refund, credit or payment for that tax year is about to expire.
The IRS is holding a refund because one or more tax returns have not been filed and they believe tax will be owed. If IRS doesn't receive your return or a valid reason for not filing by the date requested on the notice, they will determine taxes based on information received from third parties. When the IRS files a substitute for return on behalf of a taxpayer, they will use the single filing status with no dependent.
The IRS used all or part of the taxpayer’s refund to pay a tax debt. The taxpayer will receive a check for the difference if they haven't already.
If you or someone you know have received any of the above notices, please feel free to contact me at by email at email@example.com.
Ph. (612) 516 – 5878
Fax (651) 409 -2021
Email : firstname.lastname@example.org