20+ Years Experience
Enrolled Agent (EA)
Certified Tax Resolution Specialist
Published Author
Common IRS Notices Explained
CP14
Underpayment of Estimated Tax
CP501
Payment Due Notice
You owe taxes and haven't paid. The IRS is giving you a window. If you can't pay in full, we negotiate an installment agreement or payment plan.
CP504
Final Notice Before Levy
Urgent. The IRS is about to levy your bank account or wages. You typically have 30 days. We respond immediately and negotiate a resolution.
CP2000
Income Discrepancy Notice
The IRS received a W-2 or 1099 that doesn't match your return. We review and respond with supporting documentation to reduce the proposed adjustment.
Form 556
Audit Notice
The IRS is auditing a prior return. We organize your records, prepare an audit response, and represent you before the IRS.
Form 668
Lien Notice
The IRS has filed a lien against your property. Damages credit and prevents selling. We negotiate release through resolution agreements.
What to Do When You Get a Notice
Don't Panic
Read Carefully
Look at the notice date, reason, and deadline (usually 30-90 days).
Contact Us Immediately
Don't respond on your own. Let us interpret and respond strategically.
We Draft a Response
We request extensions if needed and negotiate on your behalf.
Resolve & Stay Compliant
Once resolved, we help you stay compliant going forward.
Critical: Don't Ignore a Notice
IRS Notices in Somerset County Context
Residents of Somerset, Hillsborough, Franklin Township, Bound Brook, and surrounding NJ towns are subject to both federal IRS enforcement and New Jersey state tax enforcement. We handle both simultaneously to minimize penalties.
Why Choose Leonard for IRS Correspondence?
Leonard holds Enrolled Agent (EA) status, which allows him to represent you before the IRS without a power of attorney. His CTRS credential means he's trained in IRS procedures and enforcement. He's handled dozens of notices and knows how the IRS operates. And his 20+ years in accounting means he understands the tax law behind the notice.
Serving Somerset County & Surrounding Areas
Based in Somerset, NJ, we help clients locally and nationwide.
Hillsborough • Franklin Township • Bound Brook • Manville • Bridgewater • Raritan • North Plainfield • Watchung • Warren • Piscataway • New Brunswick
Frequently Asked Questions
It depends on how much you owe and how long. Failure-to-file penalties run 5% per month (up to 25%), interest compounds at ~8% annually. A $20,000 debt from 5 years ago could add $15,000-$20,000 more.
The IRS can file a lien (prevents selling), but rarely seizes a primary residence. However, a lien damages credit and prevents refinancing. We resolve liens through payment agreements or settlements.
The Collection Statute Expiration Date (CSED) is typically 10 years from assessment. After that, the IRS generally cannot collect. We evaluate your situation to develop the best strategy.