IRS CP20 Notice: What It Means and How to Respond

If you've received an IRS CP20 Notice, it means the IRS is contacting you about a balance due on your tax account. This notice typically follows previous attempts to collect the tax owed and is a reminder that payment is due. Understanding this notice will help you take the right steps to resolve your tax situation.

What is an IRS CP20 Notice?

The CP20 Notice is sent when:

  • You have an outstanding tax balance that hasn't been paid.
  • The IRS is reminding you to pay or make payment arrangements.
  • The notice includes your balance, due date, and payment options.
Why Did I Get a CP20 Notice?

Common reasons include:

  • You didn't pay the full amount owed from a previous IRS notice.
  • You missed a payment deadline.
  • There was an error in payment processing.
What Should I Do After Receiving a CP20?

Step 1: Review Your Tax Account
Verify the balance due matches your records and any prior IRS notices.

Step 2: Pay the Amount or Arrange a Payment Plan

  • If you can pay in full, do so by the due date to avoid penalties.
  • If you can't pay now, contact the IRS to set up a payment plan.

Step 3: Contact the IRS if You Disagree
If you believe the balance is incorrect, gather supporting documents and contact the IRS immediately.

What Happens If I Ignore a CP20 Notice?
  • Penalties and interest will continue to increase.
  • The IRS may take enforced collection actions like wage garnishments or bank levies.
  • Your credit could be affected due to liens filed by the IRS.
How to Avoid Future CP20 Notices
  • File your returns and pay taxes on time.
  • Keep up with payment plans and deadlines.
  • Address any IRS notices promptly.

KARME Tax Services Can Help Resolve Your Tax Debt

Facing a CP20 Notice can be stressful, but you don't have to handle it alone. At KARME Tax Services, we:

  • Review your IRS notices and tax balances
  • Negotiate payment plans or offers in compromise
  • Help reduce penalties and interest where possible
  • Guide you toward financial peace of mind

Call KARME today at 972-519-0041 or schedule your consultation online. Don't delay — resolving tax debt early can save you money and stress.

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