A CP30 Notice is a letter from the IRS that informs you a penalty has been added to your account for not paying enough in estimated taxes. This notice usually arrives after you file your return and the IRS determines that your payments during the year did not cover your full tax liability. The CP30 includes the penalty amount and a basic explanation, but it can still leave many taxpayers confused about what went wrong or what they should do next.
Underpayment penalties are common and can happen for a variety of reasons. Maybe your income increased partway through the year and you did not adjust your payments. Maybe you are self employed and forgot to send in quarterly estimated payments. Or maybe you just miscalculated what you owed. The IRS expects most taxpayers to pay as they go, and when that does not happen, a CP30 is often the result.
So can a tax attorney help? Yes. A tax attorney can look over your situation to determine whether the penalty is accurate or if there are grounds to have it removed. If this is your first time receiving this type of notice, you may qualify for something called First Time Penalty Abatement. If you experienced a major life event such as illness, natural disaster, or financial hardship, a tax attorney can help you request penalty relief based on reasonable cause.Even if you do not qualify for penalty removal, a tax attorney can still help you understand the notice, confirm the IRS calculations are correct, and set up a plan to avoid the same issue in the future. If you have received a CP30 Notice, it is important to respond promptly. The sooner you take action, the more control you will have over how the situation is resolved.
