Silas Bamigbola
articles from Silas
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IRS Notice CP17: What It Means and How to Handle It
Published 11/24/2024 by Silas Bamigbola
IRS Notice CP17 notifies taxpayers that they have made excess estimated tax payments, resulting in a refund of the overpaid amount. This notice is informational and does not require immediate action, but recipients should review their tax records to confirm accuracy. Understanding the notice and how the IRS calculates estimated tax payments can help taxpayers manage their future tax payments better and avoid overpayment.

IRS Letter 3120: How to Resolve Tax Notice Issues
Published 11/24/2024 by Silas Bamigbola
IRS Letter 3120 is a notification sent to taxpayers regarding issues with their tax returns or accounts, often due to discrepancies in their filing, a need for identity verification, or a change in their refund amount. This letter outlines why the IRS has reached out, steps taxpayers should take to resolve any issues, and how to confirm the letter’s authenticity. Reviewing Letter 3120 carefully, responding promptly if needed, and following IRS instructions can help prevent delays in tax return processing and protect against potential penalties.

IRS Letter 5937C: Responding to Unrelated Business Income Penalties
Published 11/24/2024 by Silas Bamigbola
IRS Letter 5937C is sent to tax-exempt organizations to address issues related to unrelated business income and potential penalties. This letter may indicate a balance due, corrections to a submitted return, or a need to verify the organization’s identity. Organizations receiving this letter should review it thoroughly and follow specific instructions to either comply or dispute the findings. Taking prompt action is essential to avoid penalties and ensure compliance with IRS requirements.

Letter 947A: What It Means When the IRS Flags Your Non-Profit
Published 11/24/2024 by Silas Bamigbola
The IRS issues Letter 947A as a final notice before revoking an organization’s tax-exempt status due to unmet filing requirements. This critical notice alerts the organization that it has failed to submit mandatory returns for three consecutive years, risking the loss of its non-profit status. Letter 947A outlines the steps needed to prevent revocation, including submitting delinquent returns or providing necessary information. Taking action promptly can prevent serious financial impacts associated with the revocation of tax-exempt status.

IRS Letter 3185: Steps to Take for Business Underpayment
Published 11/24/2024 by Silas Bamigbola
IRS Letter 3185 is issued to business owners, particularly those filing as self-employed, when the IRS identifies discrepancies in Schedule C reporting, leading to a determination of underpayment. The notice outlines adjustments made by the IRS, explains the underpayment amount, and provides information on payment options, appeals, and deadlines. This article covers the steps to understand, respond to, and potentially dispute IRS Letter 3185.

IRS Letter 3477C: Why You Received It and How to Reply
Published 11/24/2024 by Silas Bamigbola
Letter 3477C from the IRS addresses issues related to discrepancies in reported business expenses. This letter typically alerts taxpayers that the IRS has flagged potential misreporting on their returns and may require additional information. Responding promptly is essential to avoid complications or delays in processing your return. In this article, we’ll guide you through what this letter means, how to respond, and where to seek assistance if needed.

CP205 Notice: Why the IRS Needs More Time with Your Return
Published 11/24/2024 by Silas Bamigbola
The CP205 Notice from the IRS is sent to taxpayers when additional time is needed to verify the information on their tax return, such as income, withholdings, credits, or business income. While most taxpayers receiving this notice don’t need to take action, it’s essential to understand its purpose, especially if you haven’t received an update after 60 days. In cases where the return wasn’t filed by you, or if identity theft is suspected, specific steps are provided to resolve the issue with the IRS.

LT4989 IRS: Steps to Avoid Penalties
Published 11/24/2024 by Silas Bamigbola
The LT4989 notice is sent by the IRS to tax preparers who failed to attach Form 8867, the Paid Preparer’s Due Diligence Checklist, to one or more client returns claiming the Earned Income Tax Credit (EITC). This omission can lead to penalties and potential delays in processing tax returns. The notice outlines the issue and provides steps for compliance, emphasizing the importance of adherence to IRS due diligence requirements to avoid future complications.

IRS Letter 3897: How to Handle Worker Classification Issues
Published 11/22/2024 by Silas Bamigbola
IRS Letter 3897 is issued to a business when a worker challenges their classification as an independent contractor and requests a determination of their status as an employee. This letter requires the employer to complete Form SS-8, providing details about the nature of the work relationship. Prompt response and accurate documentation are essential to avoid compliance issues.

CP430 Notice: What It Means When The IRS Sends a Second Request
Published 11/22/2024 by Silas Bamigbola
The CP430 Notice is issued by the IRS to notify political or exempt organizations of their obligation to file Form 1120-POL for the specified tax year. This notice serves as a second reminder after a prior notice, CP259G, was issued but did not receive a response. Filing Form 1120-POL on time is crucial to avoid penalties and maintain compliance with IRS regulations.
