Penalty Notices - CP 210 or CP 220
– We can often reserve this, but everyone’s situation is different.
The CP 210 or CP 220 letter is the Penalty Notice for Failure to Deposit. It is the notification of a change or alteration made to the tax return. Different kinds of adjustment notices are sent by the IRS. CP 210 and CP 220 are two of these notices. In these notices, you may be informed about credit transfers or penalty changes that are made to your account.
When you receive a penalty or other change notice, check your records against the notice.
Check circular E and make sure you understand when to make your deposits, and how much they should be. You should not rely on IRS notices to tell you how often to deposit. You also must use the correct deposit method. Certain large employers must use the EFTPS electronic deposit system and not make regular bank deposits.
When you receive the CP 210 or CP 220 penalty notice, there are two possible scenarios: the penalty does not apply, or the penalty is properly assessed. There are few cases where the penalty does not apply. When you are certain that the information shown by the Service is wrong, then you should contact the IRS to have it adjusted. After the IRS agrees, the penalty will be removed. One of the reasons for which the penalty can be removed is if you can prove that you depended on the erroneous advice from the Internal Revenue Service. If the penalty is large enough, and you need someone who understands the reasons for removal, then call us at 713-774-4467 and we may be able to help you.
As long as you have reasonable cause, it will be possible for you to get the CP 210 or the CP 220 penalty removed by the IRS. However, this may not be an easy task.
- If you are considering hiring us, call Joe Mastriano, CPA at 713-774-4467 or click the link below for your FREE EVALUATION.