Tax Relief with Timalyn Bowens
Episode 62: In this episode, Timalyn explains why the IRS selects certain taxpayers for audits and reassures listeners that being chosen does not automatically mean anything is wrong. Following up on last week’s episode, , Timalyn continues her audit series by breaking down how audit selections are made and why it is important not to panic if you receive an IRS notice. Contrary to common fears, receiving an audit notice does not mean jail time or that you did something wrong. Many audits are selected at random or flagged through a computer system that looks for unusual patterns or...
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Episode 61: In this episode, Timalyn breaks down one of the most misunderstood topics in tax: the IRS audit. After 60+ episodes of educating taxpayers, she’s kicking off a brand-new series that explores what an audit really means — and what it doesn’t. Many people fear a suit-wearing IRS agent knocking at their door, but as Timalyn explains, that’s highly unlikely. Instead, most audits today are conducted through correspondence and notices, not surprise visits. So, what is an audit? An IRS audit is simply a review or examination of your accounts and financial information to ensure you...
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Episode 60: In this episode, Timalyn explains your right to appeal unfair IRS decisions and why you shouldn't give up. We are celebrating three years and 60 episodes of the Tax Relief with Timalyn Bowens podcast! Provisions from the 2017 Tax Cuts and Jobs Act are set to expire in December, and many taxpayers are worried about IRS mistakes - especially after recent budget cuts and workforce reductions. Does this mean you have to accept wrongful IRS decisions? Timalyn says absolutely not. She explains that the IRS has an Independent Office of Appeals that provides fair, impartial review of...
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Episode 59: In this episode, Timalyn addresses whether or not the IRS is here to stay. We have seen significant changes at the IRS within the past few months as they went through a work force reduction. We have also seen them lose $40 billion of the $80 billion that was promised to them in funding by the Biden Administration. Does this mean that they are going to go bye bye? Timalyn doesn't believe so. She believes that this smaller force will make it more difficult for taxpayers to handle their IRS issues on their own. She also fears that some taxpayers will receive unfair treatment, as well...
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Episode 58: In this episode, Timalyn explains how much time you have to pay your tax bill and how much time the IRS legally has to collect. Your tax balance is due on the due date of the return. However, when the IRS sends you a will give you 30 days to pay before the IRS uses any enforcement. This includes things like an or . If you can pay the debt off within 180 days you may qualify for a short-term installment agreement. This agreement can be arranged using your online IRS.gov account to set up an online payment agreement (OPA). If the amount is over $50,000 you will have to...
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Episode 57: In this episode, Timalyn explains the reason you likely owe taxes this year. She highlights 5 common reasons that people owe each year. It is ultimately the responsibility of the taxpayer to ensure that they are withholding enough taxes. The top 2 reasons that people owe the IRS is because their withholding and/or estimated tax payments are off. Timalyn has created a series on her YouTube channel to walk you through the process of correcting your withholding for a W-2 job, pension, or your social security. You can find this series below. If you are self-employed or...
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Episode 56: In this episode, Timalyn explains that all hope is not lost if you can't pay your taxes in full. You do have options! First, take a deep breath! Make sure that you have your tax return filed on time. This will help you avoid any additional penalties, such as the . Payment Arrangments You may qualify to pay your balance over time. If you owe less than $50,000 and have been tax compliant you may qualify to set up an OPA yourself using the IRS website. An OPA is an . If the balance is $10,000 or less and you haven't owed in the past 3 years or defaulted on an...
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Episode 55: In this episode, Timalyn explains what the failure to file penalty is and why it is adding so much to your tax bill. She will not only talk about what it is but how it's calculated, and how to potentially get it removed. Can't File Your Taxes On Time? You can avoid the failure-to-file penalty by filing a timely tax return or tax extension. If you're an individual needing to file an extension you can do so by filing Form 4868. Timalyn will have a video to walk you through filing the 2024 4868 on her YouTube channel, coming out on March 31st. The Failure to File...
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In Episode 54 Timalyn discusses unemployment tax and how it affects a taxpayer's tax liability. Some forms of unemployment are not taxable such as workers compensation. The topics covered in this episode are: What is unemployment? Is unemployment taxable? What's workers compensation? How is unemployment reported? What is Form 1099-G? If you'd like to work with Timalyn directly, you can book a call with her at www.Bowenstaxsolutions.com . As we conclude Episode 54, we’d like to encourage you to connect with Timalyn on social media. You’ll be able to...
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In this episode, Timalyn discusses severance pay and the tax implications of receiving a severance package. She breaks it into 3 sections: What is severance pay? Is severance pay taxable? Why is my severance pay taxed at a higher rate? How to lower the taxes on your severance pay. If you are already facing a tax debt that you can't pay in full Timayn mentions episode 18 - as a resource for you to use to stop the IRS from using enforcement such as tax levies to collect from you. If you'd like to work with Timalyn directly you can book a call with her at . As we conclude...
info_outlineEpisode 45: In this episode, Timalyn discusses IRS Notices. She’ll explain what they are, why you’re receiving your IRS notice and how to read it. Then, she’ll provide some insights into the 3 types of IRS Notices that are currently being sent out fairly aggressively by the IRS.
Love Letters from the IRS
Timalyn lightheartedly refers to notices and communications from the IRS as love letters. In all reality, they can be extremely serious and require immediate attention. Once a client hires Timalyn to help resolve tax debt issues, she also receives copies of the same letters.
What Is an IRS Notice?
This is written correspondence from the IRS to the taxpayer. It can address a number of issues including a balance due, updates on activity on your account or if any changes to a tax return have been made.
Not every IRS Notice involves bad news. Nonetheless, receiving one can cause anxiety. For example, during the pandemic some people received notices of stimulus payments or confirmation of payment of the advanced child tax credit, etc. If you’ve filed an amended tax return or you find a refund you were due, the IRS will also send you a notice.
Some IRS notifications are issued to inform you of why you are receiving an IRS communication and what you need to do to resolve any potential issues.
IRS CP503 Notice
The bulk of the notifications being sent to taxpayers are CP503 notices. In Episode 29, Timalyn explained the IRS CP14 notice (demand for payment of unpaid taxes). The CP503s are different.
The CP503 notification is the second notice and a reminder of an unpaid tax balance due. If you have a tax liability when you submit your tax return, you’ll receive a CP14. Then, if the balance hasn’t been paid, the IRS will issue a CP501 (the first notice for balance due).
IRS CP504 Notice
Timalyn explains that the IRS CP504 notification is the one you really need to be concerned with, if you receive it. This is a final notice and balance due. The CP504 is also notification of the IRS’ intent to levy. In Episode 5, Timalyn answered the question, “What Is a Tax Levy?”
Basically, the Intent to Levy is the IRS telling you they have the legal right to take money owed from your personal bank account or business bank account. The IRS also has the legal right to contact your employer to request a garnishment (funds to be withheld) from your paycheck, which are then sent to the IRS. The latter can happen regardless of whether you are a W-2 employee or 1099 independent contractor. The IRS can also require the employer to make backup withholdings.
Don’t Put Your Head in the Sand
If you have received notifications from the IRS, don’t ignore them. In many situations, the IRS is willing to work with you. However, if you don’t open the letters and fail to respond, you’re going to run out of options and the IRS will run out of patience.
How to Read the IRS Notice
The office address of the IRS will tell you which actual office is sending the notification. It also signifies the level of importance of this particular IRS notice. If the address has a local address and the name of an IRS representative, your case has been assigned to an IRS revenue officer.
Your assigned IRS revenue officer is the only person you’ll be able to communicate with, going forward. He/she is the only IRS contact with whom you can correspond or speak with on the phone about your tax debt situation. These revenue officers are already overloaded with cases, you just added to his/her workload.
At the top right of your IRS notice, there is a designation of the type of notice you’re receiving. This could be the CP501, CP503 or the dreaded CP504 (the Intent to Levy). Timalyn comments that there are other types of notices, but these are the more common ones being issued, at this time. Remember, there are also notices of Accuracy-Related Penalties if you failed to report all of your income or miscalculated a deduction/credit.
The IRS Notice also provides information regarding the deadline for you to respond. There may still be a way to deal with this, even if the deadline has passed. However, you need to take action, quickly.
You can appeal an IRS decision if you’ve received an IRS CP504 (Intent to Levy) notification. You have the option of trying to contact the IRS via telephone (good luck). You may also want to pull your tax transcripts to identify where you might disagree with the IRS and what information they are using to support their claim.
The IRS Notice should also include a copy of the Taxpayer Bill of Rights. It grants you the right to tax representation. In Episode 10, Timalyn explains how to set up a payment arrangement with the IRS.
Bowens Tax Solutions specializes in tax representation. Consider booking a consultation to speak about your tax debt situation and potential options.
In Episode 37, Timalyn explains the Tax Relief Journey. It’ll explain the 3 phases of tax relief.
In closing, Timalyn urges you to make sure you read any IRS notification you may already have. These can become extremely serious, but there are steps you can take to resolve the issues.
Please consider sharing this episode with your friends and family. There are many people dealing with tax issues, and you may not know about it. This information might be helpful to someone who really needs it. After all, back taxes shouldn’t ruin their life either.
As we conclude Episode 45, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Spotify, Apple Podcasts, Google Podcasts, and many other podcast platforms.
Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today’s episode.
For more information about tax relief options, visit https://www.Bowenstaxsolutions.com/ .
If you have any feedback, or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.