Tax Answers
Got a letter from the IRS or the state? Find your notice below for what it means, the deadline, and what to do next, written by the MyTaxFella team.
IRS Notices
- IRS Notice CP14: What It Means and What To DoCP14 is the IRS's first notice that you owe tax on a return. It lists the balance, penalties, and interest, and asks you to pay by the date printed on the notice, usually about 21 days out.Read the answer →
- IRS Notice CP504: Intent To Levy, ExplainedCP504 is an urgent notice that you still have an unpaid balance and the IRS intends to levy (seize) certain property, starting with any state tax refund. It follows earlier balance due notices like CP14.Read the answer →
- IRS Notice CP2000: Proposed Changes to Your ReturnCP2000 means information the IRS received from employers, banks, brokers, or casinos does not match your return. It proposes a change to your tax, but it is not a bill and not a formal audit.Read the answer →
- IRS Letter LT11: Final Notice of Intent To LevyLT11 is a final notice of intent to levy and notice of your right to a hearing. After 30 days the IRS can levy wages, bank accounts, and other assets.Read the answer →
- IRS Letter 1058: Final Notice Before LevyLetter 1058 is the IRS's final notice before it can levy wages, bank accounts, and other property. It gives you 30 days to request a Collection Due Process hearing.Read the answer →
NY & NJ State Notices
- NY Statement of Proposed Audit Change: What To DoA Statement of Proposed Audit Change from the NYS Department of Taxation and Finance says the state plans to change your return, often after matching IRS or employer data. It is a proposal, so you can agree or respond with documents before a bill is issued.Read the answer →
- NY Notice and Demand for Payment of Tax DueA Notice and Demand for Payment of Tax Due is a New York State bill for an assessed balance. If unpaid, the state can file a tax warrant (a public lien-like judgment) and move to income executions or levies.Read the answer →
- NJ Notice of Deficiency: Your 90 Day Protest WindowA Notice of Deficiency (also called a Notice of Assessment) from the NJ Division of Taxation says the state has assessed additional tax, penalties, and interest. It is a final determination you can protest.Read the answer →
- NJ Certificate of Debt: What It Means for YouA Certificate of Debt is filed by the NJ Division of Taxation with the Superior Court for unpaid tax. It becomes a judgment that works like a lien on your property and allows wage and bank levies.Read the answer →
Tax Resolution Terms
- Offer in Compromise: Settling IRS Debt for LessAn Offer in Compromise (OIC) is an agreement to settle a tax debt for less than the full amount when you cannot reasonably pay it. The IRS compares your offer to your reasonable collection potential: equity in assets plus future disposable income.Read the answer →
- IRS Installment Agreement: Paying Taxes Over TimeAn installment agreement is an IRS payment plan for a balance you cannot pay at once. Short term plans give up to 180 days; long term plans spread payments monthly. Interest and the failure to pay penalty continue, at a reduced penalty rate while the plan is in place.Read the answer →
- IRS Penalty Abatement: How To Remove Tax PenaltiesPenalty abatement is IRS relief that removes certain penalties. The two most common paths are First-Time Abatement, for taxpayers with a clean three year history, and reasonable cause, for situations like serious illness, disaster, or inability to get records.Read the answer →
- Innocent Spouse Relief: When a Joint Return Is Not Your DebtJoint filers are each responsible for the full tax. Innocent spouse relief can remove that liability when the tax resulted from your spouse or former spouse's errors and holding you responsible would be unfair.Read the answer →
Common Questions
- CPA vs EA vs Tax Preparer: Who Should Do Your Taxes?CPAs are state licensed accountants who may or may not specialize in tax. Enrolled Agents (EAs) are federally licensed by the IRS specifically in tax and can represent any taxpayer before the IRS. Other tax preparers need only a PTIN and have limited representation rights.Read the answer →
- How Much Does Tax Preparation Cost in 2026?Professional tax preparation fees depend mainly on complexity: the number of forms and schedules, business or rental income, multiple states, and how organized your records are. A simple wage return costs far less than a return with a business, rentals, or several states.Read the answer →