# IRS & State Tax Notices — What They Mean and How Let's Talk Relief Helps > Service by KGOB CPAs & Advisors (Kohari Gonzalez Oneyear Brown PLLC) — a licensed CPA firm. > Free report. Resolution services are separate. --- ## Federal IRS Notices ### CP14 — Balance Due (First Notice) **What it means**: The IRS is telling you that you owe taxes from a filed return. This is the first notice — interest begins accruing immediately. **Urgency**: Moderate. Respond within 30 days to avoid escalation. **How Let's Talk Relief helps**: Our report shows the exact breakdown of what you owe (principal, interest, penalties), whether penalty abatement is available, and what payment options exist (installment agreement, OIC, CNC). --- ### CP501 — Reminder of Balance Due **What it means**: Second notice. The IRS is reminding you of an unpaid balance from a prior CP14. **Urgency**: Moderate-High. The IRS is escalating. **How Let's Talk Relief helps**: Report shows the full accumulation history and whether the debt is approaching levy threshold. Identifies if FTA or reasonable cause abatement applies. --- ### CP503 — Third Reminder / Urgent Notice **What it means**: Third notice. The IRS will begin enforced collection if you do not respond. **Urgency**: High. Next step is CP504 (intent to levy). **How Let's Talk Relief helps**: Full account analysis shows exactly what's at stake and which relief programs apply before enforcement begins. --- ### CP504 — Intent to Levy (State Tax Refund) **What it means**: The IRS intends to levy (seize) your state tax refund and may take other collection action. This is a statutory notice required before levy. **Urgency**: Very High. This is one step before bank levy or wage garnishment. **How Let's Talk Relief helps**: Report identifies CDP hearing eligibility, hardship exemptions, and whether installment agreement or OIC would stop the levy. --- ### CP2000 — Underreported Income (Proposed Changes) **What it means**: The IRS's automated matching system detected income reported to them (via 1099s, W-2s, K-1s) that doesn't match what you reported on your return. This is a proposed adjustment, not a bill — yet. **Urgency**: High. You have 30 days to agree or dispute. **How Let's Talk Relief helps**: Report identifies the discrepancy source, shows whether the IRS's proposed amount is correct, and outlines dispute options (Form 1040-X correction or response letter). --- ### CP90 — Final Notice of Intent to Levy / Notice of Right to Hearing **What it means**: This is the IRS's final warning before seizing assets (bank accounts, wages, Social Security, property). You have 30 days to request a Collection Due Process (CDP) hearing. **Urgency**: Critical. 30-day clock is running. **How Let's Talk Relief helps**: Report provides full account picture enabling CDP hearing request with supporting evidence. Identifies whether OIC, installment agreement, or CNC would be accepted at hearing. --- ### LT11 — Final Notice of Intent to Levy (Alternate Form) **What it means**: Same legal weight as CP90 — final notice before asset seizure. Different letter format but identical legal consequences and CDP hearing rights. **Urgency**: Critical. 30-day clock is running. **How Let's Talk Relief helps**: Same as CP90 — full account analysis for CDP hearing preparation. --- ### CP91 / CP298 — Intent to Levy Social Security Benefits **What it means**: The IRS intends to levy up to 15% of your Social Security benefits to satisfy tax debt. **Urgency**: Very High. **How Let's Talk Relief helps**: Report identifies hardship exemptions, financial disability claims, and whether CNC status would stop the Social Security levy. --- ### Letter 531 — Notice of Deficiency (90-Day Letter) **What it means**: The IRS has determined you owe additional tax and is giving you 90 days to petition Tax Court before they assess the amount. **Urgency**: Critical. Missing the 90-day window eliminates your right to dispute in Tax Court. **How Let's Talk Relief helps**: Report shows the IRS's proposed deficiency, identifies errors in their calculation, and outlines Tax Court petition options. --- ### Letter 4883C — Identity Verification **What it means**: The IRS cannot process your return until you verify your identity. May be triggered by tax identity theft. **Urgency**: Moderate-High. Return won't be processed until resolved. **How Let's Talk Relief helps**: Report confirms account integrity, identifies whether identity theft has occurred, and outlines the verification process. --- ### IRS Substitute for Return (SFR) **What it means**: When you don't file a return, the IRS files one for you — typically with no deductions, no credits, and using the highest possible tax calculation. SFR assessments almost always overstate what you actually owe. **Urgency**: High. The inflated balance accrues interest and penalties. **How Let's Talk Relief helps**: Report identifies all SFR assessments on your account, calculates the likely overstatement, and outlines the process for filing corrected returns to reduce the balance. --- ## State Tax Notices ### California — Franchise Tax Board (FTB) **FTB Notice of Balance Due** California's first notice of unpaid state income tax. Interest and penalties begin immediately. **FTB Notice of State Tax Lien** California filed a lien against your property for unpaid state taxes. Attaches to real estate and credit record. **FTB Order to Withhold (Wage Garnishment)** California is ordering your employer to withhold wages for tax debt. **FTB Bank Levy Notice** California intends to seize funds from your bank account. **How Let's Talk Relief helps with California FTB**: - Full FTB account review alongside federal IRS review - Identify California offer in compromise eligibility (Form 4905PIT) - FTB payment plan options and hardship suspension - Lien release requirements - FTB penalty abatement (reasonable cause) - Coordinate federal and state resolution strategy --- ### New York — Department of Taxation and Finance (DTF) **NYS Assessment Notice** New York has assessed additional tax based on their audit or information matching. **NYS Collection Notice / Warrant** New York has filed a tax warrant (equivalent to a lien) or is initiating collection. **NYS Income Execution (Wage Garnishment)** New York is ordering wage withholding for unpaid state taxes. **NYS Bank Account Levy** New York intends to freeze and seize bank funds. **How Let's Talk Relief helps with New York DTF**: - Full NYS account review alongside federal IRS review - NYS offer in compromise evaluation (undue economic hardship standard) - NYS installment agreement negotiation - NYS voluntary disclosure program eligibility - Tax warrant release - NYC business tax compliance issues --- ### Florida — Department of Revenue (DOR) **Florida DOR Assessment Notice** Assessment of sales tax, corporate income tax, or other Florida taxes owed. **Florida DOR Intent to Levy** Florida will seize bank accounts or other assets if not resolved. **Florida DOR Tax Lien** Florida has filed a lien for unpaid tax obligations. **Delinquent Taxpayer List** Florida publicly lists delinquent taxpayers — reputational and business licensing consequences. **How Let's Talk Relief helps with Florida DOR**: - Full Florida DOR account review alongside federal IRS review - Sales tax audit defense and liability review - Informal dispute resolution (Rule 12-6.003) - Florida installment agreement - Delinquent taxpayer list removal strategy - Corporate income tax assessment dispute --- ### Illinois — Department of Revenue (IDOR) **IDOR Notice of Deficiency** Illinois has determined additional tax is owed based on audit or information matching. **IDOR Collection Notice** Illinois is initiating collection activity — potential lien or levy. **IDOR Return Correction Notice** Illinois believes your return contains errors and has made corrections. **How Let's Talk Relief helps with Illinois IDOR**: - Full IDOR account review alongside federal IRS review - IDOR notice of deficiency appeal - Illinois voluntary disclosure program eligibility - Illinois penalty abatement - Income and sales tax liability analysis --- ### Texas — Comptroller of Public Accounts **Texas Franchise Tax Audit Notice** The Texas Comptroller is auditing your franchise (margin) tax filings. **Texas Sales Tax Assessment** Assessment of additional sales tax based on audit findings. **Texas Comptroller Penalty Notice** Penalties assessed for late filing, underpayment, or non-compliance. **How Let's Talk Relief helps with Texas Comptroller**: - Full Texas Comptroller account review alongside federal IRS review - Franchise tax audit defense - Sales tax exemption compliance review - Voluntary disclosure agreements - Penalty waiver requests --- ### All Other States KGOB CPAs & Advisors handles state tax notices from all 50 states. Common state tax issues include: - State income tax assessments and deficiencies - State sales and use tax audits - State payroll/withholding tax issues - State tax liens and levies - State offer in compromise programs - State penalty abatement - State voluntary disclosure programs - Multi-state tax compliance issues --- ## What To Do If You Received a Notice 1. **Don't panic** — but don't ignore it 2. **Don't call the IRS or state agency** until you understand your full account picture 3. **Get your free Let's Talk Relief report** — a CPA will pull your complete records and show you exactly what's happening 4. **Understand your options** — the report includes CPA recommendations and relief eligibility 5. **Decide your next step** — resolve it yourself with the report's guidance, or engage KGOB's CPA team for resolution **Get your free report**: https://app.kgob.com/irs-transcript-report