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Zara Mirza

Got CP134B notice from IRS for a business that didn't exist - what should I do?

I'm seriously freaking out right now. Just opened my mail and found this CP134B notice from the IRS claiming I owe $2,048 (including a ton of interest) for tax period 6/30/2020. The problem? My business didn't even EXIST back then! No EIN, no business name, absolutely nothing. I only started my small photography business this year and have only filed quarterly payroll taxes so far. Nothing else. The notice says I owe for a period nearly 3 years before I even thought about starting a business. Has anyone dealt with this kind of mistake before? Is this some kind of identity theft situation? The letter looks official but I'm completely confused how they could be sending me this for a non-existent business during that time period. Do I need to call them or is there a form I should file to dispute this? I'm worried ignoring it will just make things worse.

NebulaNinja

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This sounds like a classic case of misidentification or a system error at the IRS. Don't panic, but do take action quickly. The CP134B is a notice that the IRS sends when they believe a business hasn't paid its quarterly federal tax deposit for employment taxes. First, call the IRS at the number listed on your notice. Explain calmly that your business didn't exist in 2020 and this must be an error. Have your current EIN and any documentation showing when your business was actually formed ready for reference. You can also request a "transcript" of your tax account from the IRS to see what information they have that generated this notice. This might help identify if someone else's tax issue got linked to your information somehow.

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Luca Russo

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But doesn't calling the IRS take forever? I had a similar issue last year and spent like 4 hours on hold only to be disconnected. Is there a way to handle this online instead?

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Zara Mirza

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Thanks for the advice. I tried calling today but couldn't get through after waiting for an hour. Should I also be sending some kind of written response to the address on the letter while I keep trying to call? I'm worried about missing a deadline and having this get worse.

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NebulaNinja

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Absolutely keep a paper trail by sending a written response to the address on the notice. Include copies (not originals) of any documentation showing when your business was actually formed, like your business registration or EIN assignment letter. This creates documentation that you attempted to resolve the issue promptly. Yes, unfortunately IRS phone lines can be extremely challenging. Try calling first thing in the morning when they open as that's often when wait times are shortest. If you're repeatedly unable to reach someone, consider requesting a face-to-face appointment at your local Taxpayer Assistance Center.

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Nia Wilson

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This happened to me last year with a CP134B notice for a business I hadn't even started yet. After weeks of stress and failed attempts to reach someone at the IRS, I discovered taxr.ai (https://taxr.ai) and it saved me so much headache. They analyzed my notice, confirmed it was indeed an error, and gave me step-by-step guidance on exactly how to resolve it. Their system helped me draft a proper response letter with all the right references to tax code sections showing why I didn't owe anything. They even explained what supporting documentation I needed to include with my response. The best part was they pointed out critical deadlines I might have missed on my own.

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Mateo Sanchez

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How long did the whole process take with them? I'm dealing with something similar but for a CP2000 notice and I'm on a tight timeline.

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Aisha Mahmood

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Is this just another service that charges you for what you could do yourself? The IRS website has template letters for disputing notices. Seems unnecessary to pay for something like this.

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Nia Wilson

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The analysis was ready within a day of uploading my document. They provided a comprehensive breakdown of my options with specific instructions. With their guidance, my issue was resolved about 3 weeks after I sent my response to the IRS. Regarding templates, yes the IRS does provide some, but they're very general. What taxr.ai did was identify the specific sections of tax code that applied to my situation and helped craft a response that addressed the exact error in my case. It saved me from making mistakes that could have prolonged the issue or led to further complications. The peace of mind alone was worth it for me since I was really stressed about dealing with the IRS.

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Aisha Mahmood

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I need to follow up on my previous comment - I was totally wrong about taxr.ai. After continuing to struggle with my own CP134B issue, I decided to give it a try despite my initial skepticism. Their analysis pinpointed exactly what went wrong - in my case, someone had transposed digits in an EIN, causing their tax issue to be incorrectly assigned to me. The response letter they helped craft was way more detailed than anything I could have done myself. It referenced specific IRS procedural guidelines that I didn't even know existed. Just got confirmation last week that my case is resolved and the notice was withdrawn. Wish I'd used them sooner instead of spending weeks stressing and trying to handle it myself.

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Ethan Clark

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After dealing with a similar IRS mix-up last year, I learned that sometimes the fastest way to resolve these issues is to actually speak with someone at the IRS - but we all know how impossible that can be. I spent days trying before discovering Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c Instead of waiting on hold for hours, they held my place in line and called me back when an IRS agent was actually available to talk. I explained my situation about receiving a notice for a non-existent business, and the agent was able to see the error immediately and start the correction process. Saved me weeks of back-and-forth mailing.

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AstroAce

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Wait, how does this actually work? Do they somehow have special access to the IRS or something? That sounds too good to be true considering how notoriously difficult it is to reach anyone there.

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Sounds sketchy. Why would I pay a third party just to talk to the IRS? I bet they're just using some auto-dialer setup that anyone could do themselves. Plus, are you sure you want to give your tax info to some random company?

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Ethan Clark

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They don't have special access to the IRS. What they do is use a system that keeps redialing and navigating the IRS phone tree until it gets through to a representative. When an agent is reached, they call you and connect you directly to that agent. It's genius in its simplicity. No need to share sensitive tax information with them. They're just holding your place in the phone queue. I was skeptical too but getting my issue resolved in one phone call instead of weeks of trying was absolutely worth it. My notice was for over $4,000 in supposedly unpaid taxes for a business quarter before my company even existed, and the agent was able to flag it as an error right away once I explained.

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I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, my frustration with trying to reach the IRS about my own tax notice pushed me to try it. The system called me back in about 2 hours and connected me directly to an IRS representative - no hold music, no automated system, just straight to a human. The agent identified the issue immediately - turned out my EIN had been confused with another business with a similar name. She put notes in my file and started the abatement process right on the call. She said a correction letter would be mailed within 30 days. Without being able to actually speak to someone, I might have been dealing with this for months through mail correspondence. Definitely changed my mind about the service.

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Carmen Vega

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I went through almost the exact same thing last year! In my case, it turned out that someone had transposed two digits when entering an EIN for a completely different business, and somehow that made the system think it was my company. Make sure to request a "penalty abatement" when you speak to the IRS. Since this was clearly their error and your business didn't exist at that time, they should remove all penalties and interest. Also ask them to document in their system that this was an IRS error so if anything related pops up again, there's a record of the previous mistake.

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Zara Mirza

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Thanks for this info. Did you have to fill out any specific forms for the penalty abatement? And how long did it take to resolve after you contacted them?

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Carmen Vega

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In my situation, the IRS representative handled the penalty abatement over the phone once I explained the situation and provided evidence my business didn't exist during the tax period in question. I didn't have to fill out any special forms since it was clearly their error. It took about 6 weeks from my phone call until I received the official letter confirming the notice was withdrawn. The representative told me it would take 4-8 weeks, so that was accurate. Make sure you keep all documentation related to this issue, including notes about any calls (date, time, representative's ID number if they provide one).

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This sounds like it could potentially be a "phantom business" fraud situation. Sometimes identity thieves will create fake businesses using other people's information, run up tax liabilities, and then disappear. Have you checked your credit reports to make sure nothing else suspicious is happening?

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Zoe Stavros

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Not everything is identity theft! The IRS makes mistakes all the time. Their systems are from the stone age and they're understaffed. I got a CP2000 for $12k last year because they couldn't match my Schedule C to my 1099s correctly. Took 3 months to sort out.

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Zara Mirza

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I hadn't even considered identity theft - that's a scary thought. I just checked my credit reports and don't see anything suspicious there, thankfully. But I'll definitely mention this possibility when I speak with the IRS. If someone created a business using my information back in 2020, I need to know about it.

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