Business returns can generate follow-up IRS notices months after filing, especially when there are balance-due issues, credit mismatches, or penalty assessments.
Common examples include:
- CP 161 — Balance Due. This notice means the IRS shows an unpaid balance due on the account. It explains how the IRS calculated the amount due and lists payments applied to the account. Penalties may include late-payment or failure-to-deposit penalties, depending on the liability.
- CP 267 — Credit discrepancy / overpayment notice. This notice means the credits claimed on the return, such as federal tax deposits or estimated tax payments, do not match the credits the IRS applied to that tax period, resulting in an overpayment. If the taxpayer does not respond, the IRS may issue a refund unless other liabilities exist.
- CP 162 series — Partnership and S corporation penalties. These notices can reflect penalties for failure to file electronically when required, late filing, or failure to include required information on the return.
These notices often require careful comparison of the IRS notice to the filed return, payment records, and any extension or supporting documentation
That's exactly what Protection Plus is built for.
When a notice arrives, our team of EAs and CPAs takes it from receipt to resolution — so you're not the one spending hours on the phone with the IRS or drafting correspondence.
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