CP967 Notice: Why You Got It and How to Resolve It
Summary:
IRS Letter CP967 is sent to taxpayers who are delinquent in filing required international information returns, such as Form 5471, which is related to foreign corporations. Receiving this notice indicates the IRS has identified missing or incomplete filings regarding international income or assets. Ignoring this letter can lead to significant penalties. This article explains what IRS Letter CP967 entails, why you might receive it, steps to address it, and ways to prevent future issues with international tax obligations.
Receiving IRS Letter CP967 can be concerning, especially if you’re unfamiliar with the requirements for international information returns. This notice signals a delinquency related to international tax obligations, such as failing to file Form 5471 for foreign corporations. Ignoring it can lead to severe penalties, as the IRS takes foreign reporting obligations seriously. This article will help you understand why the IRS sends Letter CP967, the actions you need to take, and how to avoid future compliance issues with international reporting requirements.
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What is IRS Letter CP967?
IRS Letter CP967 is issued when the IRS detects missing or incomplete international information returns from a taxpayer. Often, this letter pertains to forms like Form 5471, which reports information on foreign corporations owned or controlled by U.S. taxpayers.
Why the IRS issues Letter CP967
The IRS sends Letter CP967 to prompt taxpayers to submit overdue international filings, ensuring they report foreign assets and income. In many cases, the IRS mandates these filings to track U.S. taxpayers’ involvement in foreign entities, preventing tax evasion. Failure to submit required forms on time may trigger an audit and lead to substantial financial penalties.
Forms associated with Letter CP967
Forms frequently associated with Letter CP967 include:
- Form 5471: Filed by U.S. taxpayers who own or control foreign corporations.
- Form 8865: Required for taxpayers with interests in foreign partnerships.
- Form 8938: Mandated under the Foreign Account Tax Compliance Act (FATCA) for reporting specified foreign assets.
Non-compliance with these filings can lead to fines, interest on unpaid balances, and potential criminal investigation in severe cases.
Pro Tip
Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.
Why did you receive Letter CP967?
Common reasons for receiving the letter
The IRS may issue Letter CP967 if a taxpayer fails to file required international information returns. Common reasons include:
- Not being aware of filing requirements related to foreign corporations or assets.
- Overlooking deadlines for submitting international information returns.
- Submitting incomplete forms or making errors in the reporting.
The IRS cross-references foreign account information provided by other countries, increasing its detection capabilities. Missing or incorrect submissions may trigger a Letter CP967 as part of its efforts to enforce compliance.
Penalties associated with Letter CP967
Not responding to Letter CP967 can lead to penalties. For example:
- Failure to file Form 5471 may result in a $10,000 penalty per missed form.
- Additional fines may accrue if forms remain unfiled after IRS reminders.
- Interest charges may be applied to any outstanding tax amounts.
Penalties can escalate quickly, emphasizing the importance of responding to the notice.
Pro Tip
Double-check deadlines on IRS Letter CP967 and respond within the stated timeframe. Prompt responses can reduce penalties and show your commitment to compliance.
Steps to take when you receive IRS Letter CP967
Receiving Letter CP967 means the IRS has identified an issue with your international filings. Follow these steps promptly to address the letter and avoid further consequences.
1. Read the letter carefully
Examine the letter to understand which forms are missing or incomplete and review any IRS instructions on what needs to be filed or corrected.
2. Verify your international holdings
Double-check your records to confirm your ownership or interests in foreign corporations or assets. If you’ve overlooked any reporting requirements, gather the necessary documents to file the missing forms.
3. Complete and submit the required forms
The IRS may list specific forms to complete and submit. Make sure you provide all required details accurately. Consider consulting a tax professional if you are unsure about any requirements.
4. Send a response to the IRS
Once you’ve completed the required forms, send a written response to the IRS confirming that you’ve filed or corrected the necessary documents. Include a copy of the Letter CP967 with your response.
5. Keep copies of your response and filings
Maintain records of all correspondences with the IRS and copies of your filed forms. This documentation will help if further clarification is needed.
Pro Tip
Consider consulting a tax professional if you have international assets. An expert can guide you through complex filing requirements and help prevent future issues with the IRS.
How to avoid future notices
Ensuring compliance with international reporting requirements can help you avoid future IRS letters and penalties.
Understand your filing obligations
Be aware of the specific forms required for foreign ownership, such as Form 5471 for foreign corporations and Form 8865 for foreign partnerships. Familiarizing yourself with filing deadlines and obligations can prevent oversight.
Work with a tax professional
Engaging a tax advisor with expertise in international tax law can be beneficial. They can guide you through the complexities of U.S. and foreign tax regulations, helping you avoid errors in your filings.
Use tax preparation software with international compliance features
Many tax software programs now include options for international compliance, which can simplify reporting for taxpayers with foreign assets or income.
Consequences of ignoring IRS Letter CP967
If you disregard Letter CP967, the IRS may take further action to enforce compliance. Potential consequences include:
- Escalating penalties: Continued failure to submit required forms can lead to increased fines and interest charges.
- IRS audit: Non-compliance with international reporting can trigger an audit, potentially uncovering other areas of non-compliance.
- Legal action: In severe cases, the IRS may pursue legal action to collect outstanding penalties and ensure compliance.
Ignoring the letter can complicate your tax situation significantly, so it’s important to address it as soon as possible.
Further support options
If you’re unsure how to proceed after receiving Letter CP967, consider the following support options:
- Consult a tax attorney or CPA: Tax professionals with expertise in international tax law can provide guidance on responding to the IRS.
- Contact the IRS: Reach out to the IRS for clarification on any instructions in the notice.
- Visit the IRS website: IRS.gov offers resources on international tax reporting and compliance.
Seeking professional support can help you respond effectively to Letter CP967, ensuring you meet your tax obligations without errors.
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Frequently asked questions
What specific actions should I take after receiving IRS Letter CP967?
After receiving IRS Letter CP967, start by reading the letter thoroughly to understand what is missing or incomplete in your international tax filings. Verify your foreign assets or holdings, gather any documents needed for completing the required forms, and promptly file the necessary forms, such as Form 5471 or others specified. Finally, send a response to the IRS with a copy of Letter CP967 and keep all records for future reference.
How long do I have to respond to IRS Letter CP967?
Typically, the IRS provides a specific timeframe in the letter by which you must respond, usually within 30 days from the date on the letter. It’s important to act within this timeframe to avoid additional penalties or enforcement actions. If you cannot meet the deadline, contact the IRS immediately to request an extension.
Can I resolve IRS Letter CP967 without professional help?
Yes, it is possible to resolve IRS Letter CP967 independently if you have a clear understanding of your international tax obligations and the forms required, such as Form 5471. However, due to the complexities of international tax compliance, consulting a tax professional with experience in foreign filings may be beneficial to avoid mistakes, ensure timely filing, and reduce the risk of penalties.
What are the penalties for failing to respond to IRS Letter CP967?
Failure to respond to IRS Letter CP967 can result in significant penalties, including a $10,000 fine for each unfiled or incomplete Form 5471. Additional penalties may apply if forms remain unsubmitted after IRS reminders, and interest charges may accrue on any outstanding balances. In some cases, continued non-compliance can also trigger an IRS audit or other enforcement actions.
What should I do if I believe I received IRS Letter CP967 by mistake?
If you believe you received IRS Letter CP967 in error, double-check your records to confirm whether you have any foreign holdings or tax obligations related to foreign corporations. If you find no reason for the notice, contact the IRS for clarification. It may be helpful to provide documentation showing that you do not have the foreign assets or interests that would trigger this notice.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- IRS Letter CP967 notifies taxpayers of delinquent international information returns, commonly related to foreign corporations or assets.
- Failing to respond to this notice can result in substantial penalties, interest, and potentially an IRS audit.
- To address Letter CP967, verify your foreign holdings, file any missing forms like Form 5471, and promptly submit a response to the IRS.
- Consulting a tax professional with international expertise can help you stay compliant with IRS foreign filing requirements and avoid future issues.
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