What the IRS is telling you
The IRS has calculated what it thinks you owe for the year, using income reported by others. It’s proposing that amount, including penalties and interest.
What to do
- File your own return for that year, with the response form, by the date on the notice. If you have deductions or expenses the IRS didn’t count, this is how they get counted.
- Accept the proposed amount only if it’s correct. Return the response form, then pay in full or ask about a payment plan.
- If you believe you didn’t need to file, call the number on the notice.
What happens if you don’t respond
The IRS moves toward assessing its proposed amount. Once a balance is assessed, collection notices follow, and the IRS can eventually file a lien or levy wages and bank accounts.
How ScrubJay can help
We file the real return for that year, and any others that are missing, so your balance reflects what you actually owe. See catch-up filing.