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IRS & states · letters and tax debt

IRS Letter Help: CP2000, CP14 and IRS payment plans

Got an IRS letter? Don't set it aside: almost every notice has a date to respond or pay by. We read the letter, pull your transcripts, respond to CP14, CP2000 and document requests, and set up an IRS payment plan if you can't pay in full. We work with the IRS and state tax agencies, online anywhere in the US. From $50.

IRS letters we handle

CP14 — the IRS says you owe
The first balance-due notice: the amount and a date to pay by. Pay in full by that date and there's no interest, but the IRS still charges a late-payment penalty.
CP2000 — your income doesn't match
The IRS compared your return with W-2s and 1099s and proposes a change to your tax. It isn't a bill or an audit, but you should respond within 30 days of the notice date — 60 days if you live outside the US.
Letter 5071C — identity verification
The IRS received a return filed under your SSN or ITIN and asks you to confirm you filed it. If you didn't, someone may have used your information.
Document requests and state letters
The IRS or your state tax agency asks you to support expenses and deductions, send documents or explain a discrepancy. We answer state letters too.

What our IRS letter response includes

Reviewing the letter
We read every page, compare it with your return, explain what exactly the IRS wants and quote the price before any work starts.
Power of attorney and transcripts
Form 2848 lets us represent you before the IRS; Form 8821 only lets us receive information. Transcripts show which income and payments the IRS has on file for you.
A response with documents
We prepare the response letter, the calculation and supporting documents and send them before the deadline — by mail, by fax or through the IRS upload tool if the notice offers it.
An IRS payment plan
If you can't pay in full right away, we set up a payment plan: short-term, up to 180 days, or monthly installments. Interest and some penalties keep accruing until the balance is paid.

IRS balance-due letters: CP14, CP501, CP503 and CP504

If a balance stays unpaid, the IRS sends one letter after another, each more serious than the last. The first one is the best one to answer.

first letter
CP14
A balance-due notice with the amount and a date to pay by. You can pay, set up a payment plan or dispute the amount.
reminders
CP501
Then CP503, the second reminder. Interest keeps growing, and the IRS may file a federal tax lien on your property.
intent to levy
CP504
The final reminder before collection: the IRS can take your state tax refund, then money from bank accounts, wages and property.

How we respond to an IRS letter: 4 steps

What matters most is the date in the letter: it decides interest, penalties and your right to dispute the amount. We give you a price and a plan within 1–2 business days of receiving the letter.

01

You send us the letter

All pages, through our secure client portal. First we check the letter is genuine: the IRS normally makes first contact by mail, and the notice number (CP or LTR) is printed in the corner.

02

Power of attorney and transcripts

We file Form 2848 once, and it covers every later matter. We pull your transcripts and compare them with your return.

03

We prepare the response

We write the response, attach the calculation and documents, review it with you and send it before the deadline. If the books are missing, we rebuild them for that year.

04

We see it through

We follow up on the IRS reply. If the balance is confirmed, we set up a payment plan; if penalties can be removed, we tell you right away.

Form 2848 / 8821 power of attorney and IRS transcripts — $120, response to a simple IRS or state letter (CP14, document request, identity verification) — $150, CP2000 / CP3219 response with recalculation — from $300, installment agreement setup — $50. Audit representation, penalty abatement and complex disputes are quoted separately after we read the letter. All prices in this section →

What to prepare before you respond to the IRS

The IRS or state letter — every page, including the response form if there is one
The return for the year in question and its documents: W-2s, 1099s, expense receipts
Proof of any payments you've already made to the IRS
For a business letter — the EIN and access to the books for that year

IRS letter and tax debt FAQ

How do I know a letter is really from the IRS?

The IRS normally contacts you for the first time by mail. It sends emails and text messages only if you opted in, and a call or message demanding immediate payment is a sign of a scam. The notice number (CP or LTR) is printed in the corner of the letter, and you can look it up on irs.gov. If you're unsure, send the letter to us.

I got a CP2000. What should I do?

Check the numbers before you pay anything. A CP2000 isn't a bill — it's a proposal to change your tax because the income on your return doesn't match what W-2s and 1099s reported. You should respond within 30 days of the notice date (60 days if you live outside the US): agree or disagree and include supporting documents. If you don't respond, the IRS will send a Statutory Notice of Deficiency. A CP2000 response with recalculation starts at $300.

What is a CP3219A?

It's a Statutory Notice of Deficiency. It can arrive, for example, when a CP2000 went unanswered or wasn't resolved. It isn't a bill or an audit either. You can dispute the amount in the US Tax Court: the petition must be filed by the date shown on the notice, and that deadline can't be extended.

What happens if I don't pay a CP14?

The IRS sends reminders — CP501 and CP503 — and then a CP504, a notice of intent to levy. After that the IRS can take your state tax refund and then money from your bank accounts, wages and property. Interest and the late-payment penalty keep growing the whole time, so it's best to act on the first letter: pay, set up a payment plan or dispute the amount.

Can I pay what I owe the IRS in installments?

Yes. A short-term plan gives you up to 180 days; individuals can apply online if they owe less than $100,000 in combined tax, penalties and interest. A long-term installment agreement with monthly payments is available online to individuals who owe $50,000 or less and have filed all required returns. Businesses set up a plan by phone, using the number on the notice. Interest and some penalties keep accruing until the balance is paid. Our fee to set up a payment plan is $50; any IRS setup fee is separate.

I got Letter 5071C. What is it?

The IRS received a tax return filed under your SSN or ITIN and wants to confirm you filed it. You can verify your identity online at irs.gov/verifyreturn if the letter offers that option, or by calling the number in the letter. If you didn't file that return, someone may have used your information, and you should tell the IRS during verification. Help with identity verification is $150.

Can IRS penalties be removed?

Sometimes. If you filed on time for the previous three years and had no penalties, the IRS may remove a failure-to-file, failure-to-pay or failure-to-deposit penalty under first-time abate. We quote penalty abatement separately, after we've read the letter.

Can you deal with the IRS on my behalf? And with my state?

Yes. Alena Tishchenko is an Enrolled Agent — the highest credential the IRS awards, with unlimited rights to represent taxpayers. With a Form 2848 power of attorney, we handle letters and calls with the IRS for you. We also work with state tax agencies: a response to a simple state letter is the same $150.

Related services: Form 1040 Business taxes Catch-up bookkeeping

Let’s start with a free 15-minute interview

Send us a request — we’ll get back to you within one business day, hold a free 15-minute interview and give you a price.

Send a request — it’s free Call: +1 (929) 340-2427