IRS Problem Resolution

You Got a Letter from the IRS. The First Step Is Understanding What It Actually Says.

Most IRS problems trace back to a return issue: a missing year, underreported income, an unclaimed deduction, or a calculation that was wrong from the start. LMN Tax reviews what the IRS is claiming, finds where the problem originated, and gets the underlying returns corrected.

CP2000 Notice CP14 Balance Due Unfiled Returns Back Taxes Amended Returns Penalty Abatement

Is This the Right Service for You?

IRS Problem Resolution is for people who have an active issue with the IRS and need to understand what happened, what they actually owe, and what to do next.

  • You received an IRS notice and are not sure what it means

    The IRS sends notices for dozens of different reasons. Some require immediate action. Some are informational. Some contain errors. The notice type determines the right response, and the wrong response can make the situation worse. LMN Tax reviews the notice and explains exactly what the IRS is claiming and what needs to happen next.

  • You owe back taxes and cannot pay in full

    A balance due with the IRS does not have to stay unresolved. The IRS offers installment agreements, currently not collectible status, and other arrangements for taxpayers who cannot pay in full. LMN Tax helps you understand which options apply to your situation and what documentation you need to request them.

  • You have unfiled returns from one or more years

    If the IRS is contacting you about a year you never filed, the fastest way to resolve it is to file the missing return correctly. LMN Tax prepares prior-year returns with the deductions you are actually entitled to, which often results in an amount owed that is much lower than the IRS substitute for return figure the notice may reference.

  • You received a CP2000 about income that was not reported

    A CP2000 means a third party reported income to the IRS that does not appear on your return. This is a proposed change, not a final bill. If the income was legitimately yours but you have deductions or expenses that offset it, those can be included in the response to reduce or eliminate the proposed amount.

  • A prior return was filed incorrectly and needs to be corrected

    Errors on a filed return, including missed deductions, incorrectly reported income, or wrong filing status, can be corrected by filing an amended return on Form 1040-X. LMN Tax identifies what was wrong and prepares the corrected return, which can reduce a balance or generate a refund depending on the nature of the error.

  • You are not sure if what the IRS says you owe is actually correct

    IRS notices sometimes contain calculation errors, misapplied payments, or income figures that do not account for deductions you were entitled to. Before paying a notice balance, it is worth verifying the amount is accurate. LMN Tax reviews the notice against your actual records and flags discrepancies.

What LMN Tax Helps With

IRS problem resolution at LMN Tax focuses on understanding the underlying issue and correcting the returns or records that caused it.

Reviewing and explaining IRS notices and letters
Identifying the root cause: missing return, misreported income, calculation error
Preparing amended returns (Form 1040-X) to correct prior-year errors
Preparing missing prior-year returns that triggered the notice
Calculating what is actually owed versus what the IRS is claiming
Identifying and flagging errors in IRS notice calculations
Responding to CP2000 notices with corrected or supporting information
Preparing installment agreement request documentation
Penalty abatement documentation for first-time or reasonable cause requests
Organizing records and documentation to support a response
Multi-year catch-up filing when several years are outstanding
Explaining your options clearly so you can make an informed decision

Why the Return Matters More Than the Notice

Most IRS problems are return problems. The notice is a symptom. The fix is in the returns.

Fix the return, not just the letter

IRS notices almost always trace back to something in the underlying return: a year not filed, income not reported, or deductions missed. LMN Tax addresses the source so the problem does not repeat the following year.

The IRS notice is not always right

Notice balances can be based on incomplete information: substitute returns that ignore your deductions, double-counted income, misapplied payments. LMN Tax reviews what the IRS is actually basing its claim on before any action is taken.

Acting sooner costs less

Penalties and interest on IRS balances accumulate every month. The failure-to-file penalty alone can add up to 25% of the unpaid tax before it stops. Getting the situation addressed as soon as possible limits the total amount that accrues.

How IRS Problem Resolution Works at LMN Tax

Four steps from first contact to a clear picture of what happened and what comes next.

Share the notice and describe what is going on

Call or send a message. Tell Nausheen what you received from the IRS, what years are involved, whether there are unfiled returns, and what has happened so far. Bring the notice itself if you have it.

LMN Tax reviews the notice and your records

Nausheen reviews the notice type, the year in question, and the underlying returns or records. She identifies what the IRS is actually claiming, whether it is accurate, and what return issues need to be corrected. Documents go through the Verifyle secure portal.

The right returns or documentation are prepared

Depending on the situation: a prior-year return is prepared, an amended return is filed, a CP2000 response is drafted, or installment agreement documentation is organized. The goal is to get the actual tax liability correct before addressing what to do about paying it.

You know what you owe and what your options are

Once the returns are correct, you get a clear picture of the actual balance due, what payment options apply to your situation, and what happens next. No surprises, no undefined next steps.

IRS Problem Resolution Questions

I got a letter from the IRS. Should I call them right away?

Not before you understand what the letter is actually saying. IRS notices cover a wide range of situations: math error corrections, underreported income, balance due, requests for documentation, and others. Each notice type has a specific correct response and its own deadline.

Calling the IRS without understanding the notice first often adds confusion rather than clarity. The first step is reading the notice carefully and identifying the notice number (usually in the top right corner), then determining what response is required and by when.

The IRS says I owe money but I think the amount is wrong. What can I do?

IRS notice balances are not always accurate. Common reasons for incorrect amounts include: income that was counted twice, a payment you made that was not credited, deductions the IRS did not have when it calculated the substitute return, or a prior return that was not processed correctly.

LMN Tax reviews the notice against your actual records. If the amount is wrong, the corrected return or documentation is prepared to dispute it before any payment is made.

I received a CP2000 notice. What does that mean?

A CP2000 is a notice of proposed changes. The IRS received income information from a third party (an employer, a 1099 payer, a bank, or a brokerage) that does not match what you reported. The IRS is proposing to add that income and charge additional tax, penalties, and interest.

It is a proposal, not a final bill. You have three response options: agree, partially agree, or disagree. If the income was legitimately yours but you had unreported deductions or expenses that offset it, those can be included in your response to reduce the proposed amount.

Source: IRS: Understanding Your CP2000 Notice

I have not filed in several years. Will addressing this make things worse?

No. Filing late is always better than continuing not to file. The failure-to-file penalty is 5% of the unpaid tax per month, up to 25%, and it continues to accrue for every month a return is not filed. Filing the missing returns stops the penalty from growing.

In many cases, the actual amount owed after deductions are properly applied is significantly lower than the IRS substitute for return figure (which assumes no deductions). LMN Tax prepares prior-year returns with the deductions you were entitled to, which often results in a much more manageable balance than what the IRS initially shows.

Can LMN Tax help me set up a payment plan with the IRS?

Yes. If there is a confirmed balance due that you cannot pay in full, the IRS offers installment agreements that allow monthly payments over time. The terms depend on how much you owe, whether you are current on all required returns, and your financial situation.

LMN Tax helps you understand which arrangement fits your situation, calculate what you qualify for, and organize the documentation needed to request it. The installment agreement is submitted by you directly as the taxpayer.

Source: IRS Publication 594, The IRS Collection Process

Have an IRS Issue? Start by Understanding What It Is.

Call or send a message. Describe what you received, what years are involved, and what the situation looks like. Nausheen will respond directly and let you know what the next step is.

LMN Tax Inc. • 10432 Balls Ford Rd, Suite 300, Manassas, VA 20109 • (By Appointment Only)