CP-540

This is a request for you to file your tax return and a warning about potential backup withholding. It will indicate what year or years they are asking for. This notice is generated because they have received information such as 1099's that indicate you may have a filing requirement and have not filed or that you omitted interest or dividends from your return. Ignoring this notice could result in the IRS assessing a tax against you based on information they have received. This will likely result in a much higher tax than if you file the return yourself. Even worse, the IRS is likely to send backup withholding notices to your bank and brokerage houses demanding that they withhold and pay to the IRS 28% of any interest or dividends paid to you. This is a serious notice.

We are specialists in preparing prior year returns - even where little documentation exists. Give us a call or e-mail if you want help with your problem.