IRS Letter 2030 – Proposed Changes to Your Tax Return

The income reported on your Form 1120 or 1041 does not match the income reported to the IRS by banks, businesses, and other payers. As a result, the IRS proposed changes to your tax return.

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Type of Notice: Return accuracy

Most common tax problem area: Business audits

Other tax problem areas: Business penalties, Unpaid business taxes

Why you received IRS Letter 2030

  1. You filed a Form 1120 or Form 1041 with the IRS.
  2. When processing the return, the IRS compared the income, credits and deductions reported on the return with information from third parties such as banks, businesses and other payers. The IRS found a discrepancy between what was reported on the return and what was reported by third parties.
  3. The IRS sent Letter 2030 to propose changes to the return based on the discrepancy. You do not need to file an amended return. Letter 2030 gives you 45 days to agree or disagree with the proposed changes.

Your options to address IRS Letter 2030

  1. Dispute the taxes you owe
  2. Make arrangements to pay

Notice deadline: 45 days

If you miss the deadline: The IRS will send you a notice that gives you 90 days to protest the additional taxes in U.S. Tax Court. If you do not protest the additional taxes, the IRS will send you a bill for taxes, penalties and interest.

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