Sales Tax Letter Sample
Know how to draft a formal sales tax letter to the department of your state telling them about the difference in sales tax payment for the financial year. Use the template given below to write your own letter. Use this example to make sure that you don’t miss on any important information. Also mention about attaching the vital documents along with the letter for the kind reference of the sales tax department. Follow the format given below and you will surely be able to draft a simple yet smart letter.
Sample Format for Sales Tax Letter
Unique Crockery Stores
22 nd Bridge Kennedy
7th October, 2014
Henry Williams Sales Manager Sales Tax department New York
Subject: Regarding sales tax payment for the 2013-14
This is in context with the sales tax payment of my company Unique Crockery Stores for the financial year 2013-14.
I want to bring to your notice that we have made all the calculations for sales tax payment of our company as per the rate of 8% of the total sales, instead of 12% which was the assigned rate of sales tax for our company. I want to inform you that this reduction and lesser value in the payment of sales tax are because of the sales tax holiday that was requested by the company for the span of two years.
Please find the above mentioned agreement along with the approval from your sales department enclosed with this letter for your referral. I have also enclosed the documents and invoices which reflect the sales of various products and the calculated sales for easy reference to the invoice amount and the quantity of the products sold for the financial year 2013-14. This sales tax has been calculated and verified by our company’s auditors.
I am enclosing a cheque of the calculated sales tax amount at the rate of 8% of the total sales. I also request you to please check your records for this reduction of sales tax which was sanctioned to our company.
Unique Crockery Store
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13 thoughts on “ Sales Tax Letter Sample ”
Kindly advice me how can prepare sale tax amendment letter reg my new godown
kindly advice me how to prepare sales tax letter to pay pending payment on January.
Please send me a letter for not submission of “c” forms in sales tax department against case.
please send me a letter format for re open sales tax registration.
please send me a letter for revising monthly return for wrong selection of purchase option( locat purchase instead of interstate purchase)
Please send me what is the remedy for previous month carry forward input tax credit is not seen in current month return. Is there is any technical problem?
please send me the vat confirmation letter so please required
Please send me the letter for advocates are exempted from payment of service tax. I received notice for the year 2012-12
Dear Sir. c form not generate of particular one party in 2016-2017 3rd quarter
Letter to Commercial tax department regarding refund of professional tax amount which was wrongly paid for the year 2017-18 instead of 2018-19.
Please guide me how to reply to commercial tax penalty letter we already paid penalty.
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Written Explanation Sample Letter to the IRS
Content provided for general information. Talk to your advisor to confirm the details for your specific situation before taking action.
Most IRS letters have two options: agree with the changes the IRS is making or send a written explanation of why the IRS is wrong and you are right. This post explains what you should consider when responding to the IRS and gives some examples you can use.
What happens when you get a notice or letter from the Internal Revenue Service?
There are over 100 different IRS notices and letters, but most of them fall into a few general categories.
- You didn’t make a payment or pay enough.
- The IRS wants additional information.
- The IRS is making changes to your tax return.
When you didn’t pay your full balance or the IRS makes changes that say you should have paid more, you may owe additional taxes plus tax penalties.
You do not have to agree with the IRS. You have the right to pay the exact amount of taxes you owe and no more. The IRS knows it doesn’t always have all of the information it needs and gives you a chance to respond.
Depending on the IRS notice or letter , there are usually two ways you’ll be asked to respond.
- More information. When the IRS asks for more information, it isn’t sure whether or not you calculated your taxes correctly. If you don’t provide the requested information, it might recalculate your taxes based on the information it has.
- Final decision with right to appeal. In some cases, the IRS is pretty sure you did your taxes wrong and that it knows what they should be. You’ll get a proposed change and have a certain number of days to appeal. If you don’t appeal, the IRS changes will stand.
How long do you have to respond to an IRS letter or notice?
The deadline to respond to the Internal Revenue Service depends on what letter or notice you receive. The deadline is usually between 30 to 90 days.
Your letter should have a deadline to respond on it.
Note that the deadline is to provide your answer to the IRS. If you want to get help from a tax professional, you should contact one well before the deadline. Whether you send your answer or a tax professional does, the IRS has to get the answer by the deadline on your IRS letter.
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If you don’t respond in time, you might face additional penalties plus interest. You could also get a threatening IRS certified letter .
How should you format a letter to the IRS?
There is no magic formula for writing a letter to the IRS. The main thing you need to do is clearly explain why you are right and the IRS is wrong.
Many IRS letters have a form with spaces for written explanations or calculations. Use the IRS response form when possible and attach additional pages when needed. If you want to type your entire response, a simple “see attached” works.
Another reason to use the IRS form is that it has your information including your Social Security Number or Tax Identification Number. This helps the IRS identify you.
If the IRS didn’t include a response form, use a standard business letter template in your word processor. Be sure to include your Social Security Number and the IRS Notice or Letter number you’re responding to.
Where do you send your response to the IRS?
Always send your response to the fax number or address provided in your IRS notice.
There isn’t just one IRS address. They have many addresses around the country for different tax issues and different geographical areas.
Using the wrong address can slow things down or even make the IRS think you didn’t respond at all.
- Tax FAQ: Social Security, Loans, Dental Expenses, and More
Now, we’ll look at some written explanation sample letters to the IRS for different situations. These are only general examples.
No two situations are exactly the same, so you may need to include more or less information. It’s important to think about exactly what the IRS is asking you and why you believe you’re correct.
If the IRS includes specific instructions, you’ll usually want to follow them, as the IRS is telling you what’s needed to resolve the situation.
If you receive an IRS letter you don’t fully understand, is complicated, or involves a large amount of money, you may wish to talk to a Certified Public Accountant or tax attorney instead of responding on your own.
Request for Supporting Documents
Responding to an IRS request for supporting documents is usually pretty easy.
Often, they’ll ask for specific documents. For example, if they want proof of your mileage deduction, they might ask for your mileage log.
Other times, they might ask for more general proof. For example, they might ask for supporting information about a deduction. You might respond with receipts, invoices, or whatever other information you have.
Most of the time, you can just attach your documents to the response form. You generally don’t need to include a written explanation unless you feel the documents you’re providing don’t tell the full story.
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Request for an Abatement
An abatement is a request to remove the penalties owed. This is usually when you realize that you made a mistake and the IRS decision is correct.
The most common abatement is the first-time penalty abatement. You may qualify if, during the last three years, you’ve:
- filed all of your tax returns on time
- haven’t had other penalties
- have paid or made arrangements to pay all of the taxes you owed
The best way to request first-time penalty abatement is actually to call the IRS . They can look up your eligibility on the spot.
Otherwise, you can respond to your notice saying, “I’m requesting the first-time penalty abatement because during the last three years, I’ve filed all of my tax returns, haven’t had any penalties, and have paid or arranged to pay all of the taxes that I owe.”
The IRS also has the discretion to give penalty abatement for reasonable cause for things like:
- Natural disasters
- Deaths in the family
- Bad advice from a tax professional
- Medical issues
For example, you might write, “I am requesting an abatement of the failing to file and failing to pay penalties for reasonable cause. I was in a serious car accident and was in the hospital from March through May. I have since filed my tax return and paid the taxes owed.”
When possible, include documentation of the hardship that you’re requesting penalty abatement for.
Telling the IRS They’re Wrong
When you believe the IRS is wrong, you have the right to show why. How you’ll need to respond depends on how complicated the issue is.
- Michigan State Tax Return
1099 issues are often fairly simple. Here are some common examples.
- “I received a CP2000 notice saying that I did not include income from a Form 1099-NEC. This income was also reported on Form 1099-K, and the 1099-NEC should not have been issued. Attached are statements from the payment processor that issued the 1099-K showing that the payments are from the company that issued the 1099-NEC.”
- “I received a CP2000 notice saying that I did not include income from a Form 1099-K. These were personal transactions rather than taxable income. The payments were from family members reimbursing me for their share of the cost of our vacation that I booked.”
There are many other potential issues, but they all follow under a few common themes.
- This is not taxable income because…
- I qualified for this deduction or credit because…
- My calculations are accurate because…
One important thing is to make sure you understand the applicable law. For example, you don’t want to be telling the IRS your tips aren’t income because they’re gifts, because the IRS has clearly said tips are taxable income under the law .
If you do want to push the limits of the established law, you may want to get professional legal or tax advice. There are gray areas where you can fight the IRS and win, but it can be hard to do without having a tax law expert on your side.
You Already Paid
It’s also not uncommon to get a notice for unpaid taxes when you already paid. It’s usually better to call the IRS in this situation so they can look up your account.
If you recently made a payment, you should know that the IRS sends letters based on data that’s usually a few weeks old. You can check your tax records online or call the IRS to see if the payment was applied to your account after the date of the letter.
Another common issue is that the payment was applied to the wrong tax period. You might not have included enough information with your tax payment or selected the wrong option when you paid online. The IRS could also have made a mistake.
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In some cases, the IRS might not cash your check or cash it but not apply it to your account.
Calling the IRS is normally the fastest way to get any payment issues taken care of. If the IRS isn’t answering the phone, you can also send a letter.
Explain that you already paid. Include proof such as your online payment receipt or proof of mailing. If you made a mistake, such as writing the wrong tax year on your check, explain that as well.
You Don’t Have an Explanation But You Can’t Pay
Another situation many people find themselves in is that they know the IRS is right but can’t pay what they owe. The most common solution is to request an installment agreement to pay your balance in monthly payments.
Ignoring an IRS letter only increases the tax penalty. Using an installment agreement or other payment arrangement can reduce the penalties and interest you’ll have to pay. It will also stop the IRS from taking other collection actions against you.
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Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If we changed your tax return, compare the information we provided in the notice or letter with the information in your original return.
If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply:
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Resources Blog Legislation
Use Tax Notice and Report Laws
by Jennifer Dunn March 20, 2018
Updated July 2019
Use tax “notice and report” laws have been in the news quite a bit lately. This post will go over what these laws are, why online sellers should get educated about them, and which states have currently enacted notice and report laws.
We recently sat down with sales tax expert Michael Fleming of Peisner Johnson to talk about notice and report laws. For more, check out the video here:
What are use tax notice and report laws?
Let’s begin with a little history. Sales tax is governed at the state level, and states are hungry for revenue. They understand that with the rise of eCommerce, more people are shopping online and sometimes not paying sales tax rather than shopping locally where sales tax is collected and turned over to state and local budgets. (This feeling was only exacerbated by a recent Government Accountability Office (GAO) study that found states are losing up to $13 billion in sales tax revenue due to eCommerce .)
However, states’ hands are tied due to the precedent set by the Quill v. North Dakota Supreme Court case. This case found that states could only require retailers with some form of “ nexus ” to the state to collect sales tax from buyers in the state.
With notice and report laws, states have found a clever way to work around the nexus precedent.
Notice and report laws require that retailers who do not have nexus in a state (often referred to in statutes as “non-collecting retailers”) instead follow stringent reporting requirements to ensure their buyers pay use tax.
States with a sales tax generally have corresponding “use tax” laws. Long story short, if a buyer in a state buys an item from an out-of-state retailer and is not charged sales tax, that buyer is supposed to pay consumer’s use tax to the state. However, this is extremely difficult to enforce. Think about it – do you keep track of every online purchase where you don’t pay sales tax? I know I don’t! Getting consumers to understand and pay use tax is extremely difficult, which is why states would rather retailers collect sales tax.
With notice and report laws, states have found a way to kill two birds with one stone – have in-state buyers pay use tax AND make life so difficult for non-collecting retailers (i.e. sellers with no nexus in the state) to NOT collect sales tax that the retailers simply buckle down, register for a sales tax permit, and start collecting sales tax.
How do notice and report laws work?
Each state’s notice and report laws are slightly different, but in general non-collecting retailers who’s gross sales in the state meet a certain threshold are required to do the following:
- Include a notice on your website that use tax may be due on purchases
- Include a transactional notice with each sale informing customers that use tax may be due
- Send an annual notice to customers who spent more than a certain amount with you reminding them that they owe use tax
- Send an annual notice to the state reporting information about the sellers who owe use tax
As you can see, this requires retailers update websites and invoices/emails, advanced recordkeeping, and sending out tax forms to a subset of your buyers. Just to reiterate, states have intentionally made this process difficult in order to encourage retailers to capitulate and just collect sales tax.
Currently 11 states have notice and report laws on the books, though only 6 have any type of penalty for non-collecting retailers who fail to comply.
Wait! Is this even legal?
Yes. And the reason it is legal is because of the nit-picky distinction that these are “reporting” laws rather than “tax” laws.
As I mentioned above, the current precedent set by the Quill v. North Dakota Supreme Court case is that states can only require retailers with sales tax nexus in the state to collect sales tax from buyers in the state.
However, Colorado changed all that. They first passed a notice and report law in 2010, but it was immediately challenged on the basis that it violated the Constitution and the precedent set by Quill. This case went all the way to the Supreme Court where, after series of legal maneuvers, it was eventually decided Colorado’s law did not violate the U.S. Constitution because it was as “reporting” requirement and not a “tax.” You can read more about Colorado’s legal battle to require out-of-state retailers to notice and report here .
Notice and Report Laws by State
This is an overview of each notice and report law. You will notice that some are more stringent than others. Only six of these even have a penalty for out-of-state sellers who do not follow the law. If you have questions about notice and report laws and how they apply to your specific business, we encourage you to check with the state or a vetted sales tax expert .
Important to note: These laws are subject to change at any time. For that reason, we recommend using this post only as a guideline and doing further research before making business decisions!
Alabama Senate Bill 86 “notice and report” law went into effect July 1, 2017. However, Alabama has not yet released information about how non-collecting sellers should respond or what the penalties are for failing to report to Alabama buyers that they should pay use tax.
Alabama has previously started a “ remote seller use tax program ” to encourage remote sellers to collect sales tax.
The law went into effect July 1, 2017.
Non-collecting retailers (i.e. retailers with no sales tax nexus in Colorado ) who have more than $100,000 in gross sales in a calendar year in Colorado are required to either register for a Colorado sales tax permit and begin collecting sales tax, or follow Colorado notice and report guidelines, found here , with a step-by-step guide found here .
Non-collecting Colorado retailers who meet the threshold are required to:
- Provide a Transactional Notice to Colorado customers, informing them that the retailer has not paid Colorado state sales taxes on the item(s) being purchased and the customer may have a tax obligation to the state. (See a sample Transactional Notice here.)
- Provide an Annual Purchase Summary to each Colorado customer by January 31 of the following year. This notification should be an end-of-year summary of purchases from the non-collecting retailer to assist Colorado customers in filing their tax returns
- Date of purchase(s)
- Amount and category of purchase(s)
- Whether or not the purchase was tax exempt (if known by retailer)
The penalty is $5 for each sale to a Colorado Purchaser that does not provide a Transactional Notice, with a maximum penalty of $25,000. There is a $10 penalty for each Annual Purchase Summary that is not sent by the non-collecting retailer to the Colorado purchaser, with a maximum penalty of $50,000.
The Colorado Department of Revenue has agreed to waive any penalties for failure to follow the law’s notice and reporting requirements for transactions occurring prior to the effective date of July 1, 2017.
This law went into effect July 1, 2017.
Non-collecting retailers (i.e. retailers with no sales tax nexus in Kentucky ) who have more than $100,000 in gross sales in Kentucky are required to either register for a Kentucky sales tax permit and begin collecting sales tax, or inform buyers that they have the obligation to pay Kentucky use tax. You can read Kentucky’s publication on this here .
Sellers have no obligation to report to the state.
This law went into effect July 1, 2013.
Non-collecting retailers (i.e. retailers with no sales tax nexus in Louisiana) who gross $50,000 or more per year in sales to Louisiana buyers are required to either register for a Louisiana sales tax permit and begin collecting sales tax, or comply with Louisiana’s notice and report law. You can read more about this law here (search “Act 569”).
Non-collecting Louisiana retailers who meet the threshold are required to:
- Provide a Transactional Notice at the time of sale notifying buyers that use tax may be due on the purchase(s)
- List the amounts and dates of purchases
- State the name of the retailer
- State whether the property/service is taxable or tax exempt (if known)
- State that Louisiana use tax may be due
- Provide an Annual Statement to the Louisiana Department of Revenue by March 1 of the following year. The notice must contain the total amount paid by the purchaser to the retailer during the calendar year. This notice should contain details of what the purchaser bought.
According to the Louisiana Department of Revenue, “The Secretary may by subpoena, compel witnesses and the production of documents for purposes of enforcement of the requirements relative to the required notices and annual statements concerning taxable transactions occurring in Louisiana involving a remote retailer. The Secretary may request that the subpoena be enforced by court order. Any dealer or remote retailer selling property or services to a Louisiana resident is considered to have consented to the jurisdiction of the courts of Louisiana and the Board of Tax Appeals.”
All non-collecting retailers (i.e. sellers with no sales tax nexus in Oklahoma ), who make more than $10,000 in aggregate sales in Oklahoma in the previous 12 calendar months, are required to either register for an Oklahoma sales tax permit and begin collecting Oklahoma sales tax, or, under H.B. 1019, to do the following:
- post a conspicuous tax notice on their websites/forums . The notice should state that sales or use tax may be due pursuant to 68 O.S. §1393 and that the Oklahoma purchaser is required to file a return if tax is due
- provide a written notice to each purchaser at the time of sale stating that sales or use tax is not being collected, that the purchaser may be required to remit sales or use tax directly to the Oklahoma Tax Commission. The notice should also give instructions on how to obtain more information about this from the Oklahoma Tax Commission
- provide a written report to purchasers every year by January 31 telling them they are required to pay use tax on purchases made in the preceding calendar year. The Oklahoma Tax Commission will provide forms for this document.
- provide a written report to the Oklahoma Tax Commission every year reporting on the activities of sellers who did not pay sales tax and thus are required to pay use tax. The Oklahoma Tax Commission will provide forms for this document.
Penalties for sellers who do not comply are:
- 20% of total Oklahoma sales in the previous 12 months
The penalty is assessed separately for each violation but can only be assessed once per calendar year. For five years after this penalty provision takes effect, the OTC can abate or reduce the penalty or interest due to hardship or good cause.
This law went into effect in April 2018.
Non-collecting retailers (i.e. retailers with no Pennsylvania sales tax nexus ) who have more than $10,000 in gross sales in a calendar year in Pennsylvania are required to register for a Pennsylvania sales tax permit and collect sales tax from Pennsylvania buyers or to follow Pennsylvania’s notice and report guidelines. Pennsylvania refers to non-collecting retailers as “remote sellers.”
Pennsylvania is a bit different. Remote sellers must elect by March 1 whether they will:
- Register to collect and remit Pennsylvania sales tax
- Comply with Pennsylvania’s notice and report requirements
If the seller elects to comply with Pennsylvania’s notice and report requirements, then starting April 1, 2018 they must do the following four things:
- Post a notice on the sales forum (website, listing, etc.) stating that use tax is due.
- Provide a written notice at the time of purchase that use tax is due.
- Provide an annual report to purchasers by January 31 of the following year include a list of type, date and purchase price of each product they purchased from you.
- Provide an annual report to the Pennsylvania Department of Revenue by January 31 of each year that includes the purchaser’s identifying information and their total dollar amount of purchases from you in the calendar year.
Important to Note: Pennsylvania requires specific language on their notices, and you can see the full text here .
Each failure to comply with the notice and reporting requirements can result in a penalty of $20,000 per violation, per year, or 20 percent of total Pennsylvania sales during the previous 12 months, whichever is less.
This law went into effect February 1, 2018.
Non-collecting retailers (i.e. retailers with no Rhode Island sales tax nexus ) who make more than $100,000 in Rhode Island sales or more than 200 transactions to buyers in Rhode Island are required to either register to collect Rhode Island sales tax or comply with Rhode Island’s notice and report requirements. You can read the text of Rhode Island’s law here .
If the non-collecting retailer elects to not to register and choose to comply with notice and report requirements, they must:
- Post the Website Notice on your website
- Notify the customer at the time of purchase (Checkout Notice);
- Notify the customer within 48 hours of purchase (48-Hour Notice);
- Send customer with $100+ in annual purchases the Annual Notice by January 31st; and
- Provide by February 15th each year the Annual Attestation that the notice requirements were fulfilled.
You can read Rhode Island’s notice and report guide for non-collecting retailers here .
There are no stated penalties for non-compliance.
This law went into effect August 17, 2017.
Implementation of South Dakota’s notice and report law is currently on hold pending the South Dakota v. Wayfair Supreme Court case.
In the meantime, you can read about South Dakota’s notice and report law here .
This law originally went into effect July 1, 2011.
According to a 2012 law, non-collecting retailers (i.e. retailers with no sales tax nexus in Tennessee ) are required to inform buyers that they may owe Tennessee use tax. However, there is no penalty for non-compliance.
You can read more about Tennessee’s notice and reporting requirement here .
This law went into effect March 26, 2012.
Non-collecting vendors in Vermont (i.e. vendors with no sales tax nexus in Vermont ) are required to either register for a Vermont sales tax permit , or comply with Vermont’s use tax notice and report law. Vendors who made more than $100,000 in retail sales in Vermont have more notice and report responsibilities.
The following are Vermont’s requirements:
- All non-collecting vendors – Provide a transactional notice with every Vermont reportable purchase not exempt from sales and use tax.
- Every non-collecting vendor for every Vermont purchaser who made $500.00 or more in total purchases in the previous calendar year – Send notification to all Vermont purchasers with $500.00 or more total, showing the total amount paid by the purchaser for Vermont purchases made in the previous calendar year.
- Non-collecting vendors who made $100,000.00 or more in sales into Vermont in the previous year – Transmit an annual customer information report to the Department of Taxes on or before January 31 of each year for every purchaser required to receive an annual purchase summary.
- The penalty for a failure to provide a transactional notice for a Vermont purchase is $5.00 for each such failure, unless the non-collecting vendor shows reasonable cause for the failure.
- The penalty for a failure to send the annual purchase summary is $10.00 for each such failure, unless the noncollecting vendor shows reasonable cause for the failure.
- The penalty for a failure to transmit an annual customer information report to the Vermont Department of Taxes is $10.00 for each failure, unless the non-collecting vendor shows reasonable cause for the failure.
You can read more about Vermont’s notice and report law here .
Effective July 1, 2019, SSB Bill 5581 eliminated both the notice and reporting requirements established in the state’s 2018 Marketplace Fairness law
You can read more about Washington’s economic nexus law and update regarding notice and reporting requirements) here .
This was updated July 1, 2019.
I hope this post has provided more detail about the various use tax notice and report laws in different US states. Once again, it’s vitally important to stress that these laws are subject to change, and you should almost always consult with the state’s department of revenue or a tax advisor before making major decisions about your business.
Do you have questions or something to say about use tax notice and report laws? Start the conversation in the comments! Want to take sales tax off your plate? To learn more about TaxJar and get started, visit TaxJar.com/how-it-works .
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Published: November 4, 2020 | Last Updated: February 4, 2022
Letter 4383, collection due process/equivalent hearing withdrawal acknowledgement.
View our interactive tax map to see where you are in the tax process. It could help you navigate your way through the IRS.
This is a 30 day notice, please enter the date of your notice so we can help you determine how much time you have left to pay
You have [days number] days remaining to remit payment.
Please send payment immadiately or contact the IRS at 1-877-777-4778
You are [days number] late to remit payment.
This letter is issued by the Appeals Office of the IRS acknowledging they received your withdrawal request for a Collection Due Process (CDP) or Equivalent Hearing (EH).
This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.
What does this mean to me?
Appeals has received your CDP or EH withdrawal request because you have reached a resolution or agreement with the Internal Revenue Service regarding the tax periods on the CDP/EH hearing request or you are satisfied that you no longer need a hearing with the Office of Appeals. By submitting this form, you withdraw your hearing for lien, levy, or both.
By withdrawing a CDP request, Appeals will not verify that all legal and administrative requirements were met for the periods listed on the original appeal request. You will also give up your right to go to the U.S. Tax Court. When the CDP is withdrawn, levy action is no longer suspended and the Collection Statute Expiration Date (CSED) is no longer suspended.
By withdrawing an EH the IRS will not make a decision or determination on your hearing request however you are not giving up any other appeal rights you may be entitled to, such as an appeal under the Collection Appeals Program (CAP).
How did I get here?
You have a balance owed on our tax account. The IRS has either issued you a notice of intent to levy with appeal rights or filed a Notice of Federal Tax Lien (NFTL). You have exercised your appeal rights and either made a timely request for Collection Due Process CDP or made a request for a Collection Due Process (CDP) hearing after the due date for a timely hearing and you were entitled to an Equivalent Hearing (EH) within the 1-year period with the Appeals Office of the IRS.
You are in between the time a CDP/EH is requested and the time that appeals issues a determination or decision letter.
Process: Face to Face or Telephone Conference on CDP/EH line or; Process: Appeals Considers: Were all administrative legal requirements followed, Collection Alternatives, Innocent Spouse Relief, Balancing Test – whether governments interest in efficiently collecting tax is no more intrusive than necessary.
What are my next steps?
If you have questions.
you can contact the person shown at the top of the letter.
If you agreed to a collection alternative
such as an installment agreement or offer in compromise, you’ll need to make payments based on your agreement with the IRS. You’ll also need to stay current in filing and paying your taxes during the time of the agreement, and if you enter into an offer in compromise, for five years after the IRS accepts your offer.
If your case is returned to Collection
you could review information regarding enforcement actions:
You could also review information regarding collection alternatives and resolutions:
- Installment Agreement
- Offer in Compromise
- Currently not Collectible
I need more information
Publication 1660, collection appeal rights, taxpayer bill of rights, the right to be informed, the right to appeal an irs decision in an independent forum, the right to challenge the irs’s position and be heard, the right to a fair and just tax system, where can i get additional help.
If you think you’ll have trouble paying your taxes or the NFTL filing will cause economic hardship, it’s helpful to know what your options are to address your tax debt .
IRS.gov has resources for understanding your notice or letter .
Browse common tax issues and situations at Get Help .
If your IRS problem is causing you financial hardship, you’ve tried repeatedly and aren’t receiving a response from the IRS, or you feel your taxpayer rights aren’t being respected, consider contacting the Taxpayer Advocate Service (TAS) .
You may be eligible for representation from an attorney, certified public accountant (CPA), or enrolled agent (EA) associated with a Low Income Taxpayer Clinic (LITC). LITCs also provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language.