What’s the first thing you do when you receive a Tax Notice? Mail it to your Tax Preparer? Call the Taxing Agency and ask for an explanation. Put it in the drawer and hope it disappears.
Refer to the attached IRS TAX NOTICE LIST and try to understand the reason you are receiving the Notice. If you receive a “CP298”, look at the IRS TAX NOTICE LIST and conclude it is a “Final Notice on Social Security Benefit’s.” “CP” means Computer paragraph. The IRS depends on its computer-generated system to read tax returns, letters sent in from taxpayers, Tax Preparers, and their Representative. With its electronic system, the IRS computed tax payment deficiencies and calculated the taxpayer owes additional tax. To receive a “CP298” the taxpayer ignored many notices from the IRS. Then the threatening notices come. Now a CP298. Next the taxpayer WILL be levied. After this point it is harder and more time consuming to reverse the action of the IRS. But it can be done. While in this example it may be obvious from reading the letter itself that the IRS is planning to LEVY – Garnish your benefits (See GARNISHMENTS- SOCIAL SECURITY BENEFITS) in some cases it is not. Reading the IRS Notice List may help.
Then type in the Web Browser “CP 298”. Usually the Tax Agency’s explanation is listed first. https://www.irs.gov/individuals/understanding-your-cp298-notice . The IRS explanation is clear and gives you steps to follow.
The STATE OF MICHIGAN TAX NOTICE LIST can be found at https://www.michigan.gov/taxes/0,4676,7-238-75545_43715_76161_76262—,00.html. This webpage lists all the types of notices you may receive. In this list are links to provide you with an explanation of the notice.
For instance, if you receive a Garnishment Disclosure Notice, by clicking on the link it shows this means that “This notice was sent because your refund has been applied to a garnishment as a result of a debt owed to the creditor identified in the notice. For more information contact the Plaintiff/Trustee to which you are indebted.”
Answers to general questions can be found at https://www.michigan.gov/taxes/0,4676,7-238-75545_43715_76161—,00.html