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CP34 notice: what it means and what to do

Got an IRS CP34 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.

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What the IRS says this notice is about

This notice is to inform you that the pause on collection activity during your incarceration and for 180 days after your release has ended. It also serves as a reminder that you have an unpaid balance on one of your tax accounts.

Your balance includes the original amount owed, interest, and any applicable penalties (outside the temporary suspension period). We’ll continue to charge interest and any applicable penalties until you pay the balance due in full.

What you need to do

Read your notice carefully. It explains how much you owe and your payment options.

Pay your unpaid balance . Interest and applicable penalties will stop accruing once the balance is paid in full. You can pay your balance online and receive instant confirmation of your payment.

If you are unable to pay the full amount, pay as much as you can now to reduce additional penalties and interest. You may also:

If you have an outstanding balance for another tax year, we'll continue to apply any refunds to that balance until it’s paid in full, even if you have a payment plan.

Your deadline

Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.

What to check before you answer

You may be able to remove the penalties

If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.

Cannot pay it all now? Ask for a payment plan

You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.

Is this letter really from the IRS?

The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.

You may want to

Create or login to your Online Account to:

Common questions

How much do I owe right now?

The amount you owe is shown on your notice. However, your balance may have changed since the notice was issued due to daily interest. To view your current balance, view your Online Account .

What happens if I can't pay the full amount I owe?

You can apply for a payment plan if you can't pay the full amount you owe. Once you complete your online application you will receive immediate notification of whether your payment plan has been approved.

You may also Consider an offer in compromise (OIC) or request a temporary collection delay if you’re experiencing financial hardship.

What if I was already on a payment plan or installment agreement prior to my captivity, how do I find out the status of it?

If you had an installment agreement or payment plan before your captivity, it may still be in place, or it may need to be updated. The easiest way to check the status of your payment plan is to:

If you’re unable to access your account online, you can call us at the toll-free number shown on your notice for assistance.

What if I defaulted on my installment agreement or payment plan as a result of my captivity?

If your installment agreement or payment plan defaulted while in captivity:

If penalties were applied outside the suspension period, you may request penalty relief due to reasonable cause.

What happens if the IRS filed a Notice of Federal Tax Lien prior to my captivity?

A Notice of Federal Tax Lien may still be in place if it was filed before your captivity. A lien protects the government’s interest in your property when you have unpaid taxes.

Here’s what you can do:

Will I be charged additional interest on the amount I owe?

We charge interest on any outstanding balance until the amount is paid in full. Interest accumulates daily, so the longer you wait to pay, the more interest we add to your account. Visit IRS.gov/Interest for more information.

Will I receive a penalty if I can't pay the full amount?

We normally have to charge penalties by law. But, because you were being held captive, we didn't charge those penalties while you were captive and for 180 days after you were released. However, you may be charged a failure to pay penalty or failure to deposit penalty, depending on what you owe.

To the extent penalties apply outside of the suspension period, we might be able to waive or lower those penalties due to reasonable cause. To learn more, visit IRS.gov/Penalties .

What if I need to make a correction to my tax return?

You'll need to file Form 1040-X, Amended U.S. Individual Income Tax Return PDF .

What if I’m a victim of identity theft?

If you believe your tax account was affected by identity theft, we’re here to help you resolve it. Identity theft can happen when someone uses your personal information to file a tax return or access your IRS account without your permission.

If this may apply to you, take the following steps as soon as possible:

Once we receive your information, we’ll work to secure your account, verify your identity, and correct any issues. While we review your case, collection activity may be paused. For more information and step-by-step guidance, visit IRS.gov/IdentityTheft.

What should I do if I have questions about the notice?

Call the toll-free number shown on your notice if you have questions or need help understanding your notice or your options.

You can also visit Assistance for hostage and wrongfully detained taxpayers | Internal Revenue Service for additional information.

Helpful information

Get my response letter for CP34 notice

Related notices

Source

  1. IRS: Understanding your CP34 notice