Millions of Americans will get an important letter from the IRS this month – why ignoring it could cost you

MILLIONS can expect to receive a letter from the Internal Revenue Service this month – and it won’t be an early Christmas card.

This will apply to a group that has not paid enough tax and will receive a CP14 letter in the mail, which is sent to taxpayers with balances over $5 in their accounts.

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Approximately 9 million CP14 letters are sent each year

The notice will detail the amount you owe and require you to make payment.

Mark Steber, director of tax information at Jackson Hewitt, said CBS News that the IRS issues about 9 million of these notices each year.

They are required by law to be sent 60 days after the agency assesses a tax liability.

Considering the tax filing deadline for this year was April 18, that means notices could hit mailboxes in June.

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Why You Shouldn’t Ignore It

Perhaps the worst thing you can do is do nothing.

There will, of course, be a balance that the IRS will require you to pay before the due date.

Payments are requested within 21 days of receipt of CP14, according to the Taxpayer Advocate Service (TAS).

If the deadline is not met, the IRS could impose penalties on you.

This includes a charge of 0.5% per month on taxes due, as well as a maximum penalty of 25% on the total balance due.

And it could even get worse if the amount is not paid within 60 days.

“If the taxpayer does not pay the amount owing within 60 days, the IRS may proceed with collection activity, including filing a notice of federal tax lien,” the CAS wrote.

Additionally, the IRS can even seize your property, which includes your home or car.

Your other options

There may be a few other options – but regardless, be sure to read the notice carefully and follow the instructions.

If you cannot afford to pay the full balance, you may be able to set up a payment plan and also request a temporary suspension of collection.

If you disagree with the review or if it is incorrect, you can call the number listed in the upper right corner of the letter.

“Please have your documents (such as canceled checks, amended statements, etc.) ready when you call,” the IRS said. advise.

Those having trouble reaching a representative can also mail the IRS with the contact information provided on the notice.

For more news this tax season, here are four reasons why your tax refund is delayed.

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