It’s important for taxpayers to address the CP19 Notice promptly. If no action is taken, the IRS will assume the changes are correct and will proceed with collection actions if a balance remains unpaid.
Key final points:
- Penalties and Interest: If the IRS recalculates the tax owed based on unreported income, penalties and interest will be assessed on the unpaid balance. The sooner the discrepancy is addressed, the lower the penalties will be.
- Response Deadline: The CP19 will specify a deadline by which the taxpayer must respond if they wish to dispute the discrepancies or provide additional documentation. It is crucial to meet this deadline to avoid further action by the IRS.
- What Happens If You Agree: If the taxpayer agrees with the IRS’s changes, they can simply pay the balance due using the payment instructions in the notice.
In summary, the CP19 is an essential document for ensuring that the IRS has the correct information about a taxpayer’s income. Ignoring this notice can result in further penalties, interest, or enforcement actions, but responding promptly can lead to resolution with minimal issues.