As a small business owner in the trucking industry, staying on top of your finances is crucial. However, dealing with IRS notices can be daunting and stressful. At Trucker CFO, we specialize in providing accounting, tax preparation, and tax problem resolution services for small business trucking companies. In this blog post, we will break down the most common IRS notices you might encounter and how to handle them.
Notice of Audit (IRS Letter 2202)
One of the most intimidating notices to receive from the IRS is the Notice of Audit. This letter informs you that your tax return has been selected for examination. Here’s what you need to know:
- Why You Might Receive It: Your return may have been selected due to discrepancies, random selection, or because it includes items commonly associated with errors.
- What to Do: Don’t panic. Gather all relevant documents, including receipts, logs, and financial statements. Contact Trucker CFO immediately for assistance. Our team will help you prepare and represent you during the audit process to ensure your interests are protected.
Notice of Balance Due (CP14)
A Notice of Balance Due indicates that the IRS believes you owe additional taxes. This notice is commonly sent if there is a discrepancy between what you reported and what the IRS has on file.
- Why You Might Receive It: Common reasons include underreported income, calculation errors, or unreported payments.
- What to Do: Review the notice carefully. Compare it with your tax return to identify any discrepancies. If you agree with the notice, make arrangements to pay the balance. If you disagree, contact Trucker CFO for assistance in disputing the notice.
Identity Theft Notifications (CP01A)
Identity theft is a growing concern, and the IRS has measures in place to protect taxpayers. If the IRS suspects your identity has been compromised, you will receive an Identity Theft Notification.
- Why You Might Receive It: Suspicious activity, such as multiple returns filed under your Social Security number, can trigger this notice.
- What to Do: Follow the instructions provided in the notice. Typically, you will need to confirm your identity. Contact Trucker CFO to guide you through the process and ensure your tax records are secure.
Notice of Proposed Adjustment (CP2000)
The Notice of Proposed Adjustment is sent when there is a discrepancy between the income, payments, or credits reported on your return and the information the IRS has from third parties.
- Why You Might Receive It: Mismatched information from W-2s, 1099s, or other financial documents.
- What to Do: Review the notice carefully. If you agree with the proposed adjustment, follow the instructions to pay any additional tax owed. If you disagree, gather supporting documents and contact Trucker CFO to help you respond to the IRS.
Notice of Underreported Income (CP75)
If the IRS suspects you have underreported your income, you will receive a Notice of Underreported Income.
- Why You Might Receive It: Discrepancies between your reported income and third-party reports.
- What to Do: Gather all relevant documents to verify your reported income. Contact Trucker CFO for assistance in addressing the notice and resolving any discrepancies.
Final Notice of Intent to Levy (CP90)
This is a serious notice indicating that the IRS intends to seize your assets to settle a tax debt.
- Why You Might Receive It: Unpaid taxes after previous notices have gone unanswered.
- What to Do: Do not ignore this notice. Contact Trucker CFO immediately. We can help negotiate with the IRS to arrange payment plans or seek other resolutions to avoid asset seizure.
Receiving an IRS notice can be stressful, but understanding the nature of the notice and knowing the steps to take can make the process less daunting. At Trucker CFO, we are here to help you navigate these challenges and ensure your financial well-being. If you receive any IRS notice, don’t hesitate to contact us for professional assistance and peace of mind.
Need Help? Contact Trucker CFO Today!
If you have received an IRS notice or need help with any tax-related issues, Trucker CFO is here to assist you. Our team of experienced professionals specializes in the unique needs of small business trucking companies. Reach out to us today for expert advice and support.