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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2829
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Domagoj. Thanks question
, I have received IRS ltter

Customer Question

Customer: Domagoj. Thanks for taking question
JA: Thanks. Can you give me any more details about your issue?
Customer: I have received IRS ltter 2797 BOD Code:SB CP 501 simply asking to verify my adress. Should I be worried?
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Customer: yes
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Submitted: 11 months ago.
Category: Tax
Expert:  Robin D. replied 11 months ago.

Hello

When corresponding with a taxpayer, the IRS uses the “address of record,” which is generally the address given on the taxpayer’s last return.

IRS policy requires the taxpayer to provide “clear and concise” notice of any change of address.

When the IRS sends a notice or document to a taxpayer’s “last known address,” it is legally effective even if the taxpayer never receives it.

When the IRS sends a notice and it is returned they then send Letter 2797 for the taxpayer to confirm that the address is correct or to advise on the correct address.

The IRS maintains a research tool, the Address Research (ADR) system, to attempt to perfect or locate a “good” or “better” address. Most of these are collection-related notices such as balance due (that is the code 501 on the letter), return delinquency, intent to levy, or installment agreement default notices.37 When it identifies potential addresses, the IRS issues Letter 2797, commonly referred to as the “Are You There” letter. This letter is generated and mailed to all potential taxpayer addresses, asking the taxpayer to confirm the address and sign and return the letter.

You should call the IRS or return the letter. If they are showing a balance due for you and they are not correct then you can take steps to correct before the situation gets worse.

Expert:  Robin D. replied 11 months ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

Expert:  Barbara replied 11 months ago.

Different expert here - my name is ***** ***** please allow me to provide you with additional information you will find helpful.

The Letter 2797 is a request for information that is sent by the IRS to a taxpayer to obtain updated information, such as verifying the accuracy of your address.

The CP designation refers to Code Paragraph, and in the cases of CP 501 it indicates that you have a balance due.

BOD stands for Business Operating Division and Code SB is for Small Business/Self-Employed.

The letter you received appears to be connected to a business (self employed income) that you operated which has a balance due, and they are apparently also trying to verify the accuracy of the address information and taxpayer information they have on file for you.

Please let me know if you require further information or clarification.

Thank you and Happy Holidays,

Barb

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