Many people in Peoria and Las Vegas are caught off guard when an IRS notice arrives claiming they owe more than what they originally filed. It can feel confusing or even unfair, but in most cases, the IRS isn’t making random decisions — the agency is responding to information its systems detect.

Below is a straightforward explanation of the most common reasons taxpayers in both regions end up with unexpected IRS balances.

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Income the IRS Sees That You May Not Have Counted

The IRS receives copies of many income sources directly from employers, banks, and third-party platforms. If your tax return doesn’t include all of the income the IRS sees, the system automatically adjusts your tax upward.

This is especially common when taxpayers have:

Peoria, IL

• Manufacturing or warehouse overtime

• Seasonal work income

• Side jobs paid via 1099-NEC or 1099-K

• Retirement distributions taken early

Las Vegas, NV

• Tip income not fully reported

• Casino winnings

• Multiple hospitality or contractor jobs

• Payment app deposits flagged by 1099-K

If anything is missing, the IRS assumes the higher number is correct.

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IRS Corrections to Credits and Deductions

Many unexpected tax bills come from IRS adjustments to credits or deductions. If the IRS believes a credit was calculated incorrectly, it simply recalculates your return and sends you the new balance.

Common triggers include:

• Incorrect Child Tax Credit calculations

• Premium Tax Credit repayment after income changes

• Earned Income Tax Credit adjustments

• Education credits that don’t match school reporting

Even a small correction can create a much larger bill.

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Self-Employment Income and Missing Estimates

Contractors, gig workers, and small business owners in both cities are particularly vulnerable to IRS adjustments.

The IRS adds tax when:

• Quarterly estimated payments were missed

• Income reported by clients isn’t reflected on the return

• Business expenses weren’t documented well enough

• Payment-app income (Venmo, Cash App, PayPal) shows up on IRS records

Because self-employment tax includes both sides of Social Security and Medicare, the numbers add up quickly.

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IRS Substitute Returns (SFRs)

If you didn’t file a return at all, the IRS may create one for you. This is one of the fastest ways to end up with a much larger balance than expected.

Substitute returns do not include:

• Dependents

• Filing status benefits

• Business deductions

• Itemized deductions

• Credits

They simply list your income and compute the highest possible tax.

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Penalties and Interest Make a Big Difference

Even when the initial amount is small, penalties and interest grow every month.

Common situations include:

• Filing late

• Paying late

• Missing a year and triggering an automatic filing penalty

• Multiple years of compounding interest

Taxpayers often believe the IRS added “extra tax,” when in reality, the balance is mostly penalties stacked over time.

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Why More IRS Notices Are Showing Up Now

The IRS has expanded automated matching programs. These systems compare millions of data points and generate notices automatically.

Common notices showing unexpected balances include:

• CP2000 (income mismatch)

• CP14 (unpaid tax)

• CP501–CP504 (increasing balance & final warnings)

• LT11 (intent to levy)

Many people miss the first notice and only discover the issue once enforcement begins.

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How Total IRS Relief Helps You Take Back Control

If the IRS says you owe more than you expected, you do not have to deal with it alone. Total IRS Relief helps taxpayers in both Peoria and Las Vegas by:

• Reviewing the IRS’s calculations for accuracy

• Correcting returns or filing missing years

• Stopping levies, garnishments, and aggressive collection

• Requesting penalty relief when allowed

• Negotiating installment agreements or hardship status

• Pursuing Offer in Compromise if you qualify

Whether the issue is a mismatch, a missed return, or years of IRS notices piling up, Total IRS Relief guides you through every step and works to reduce or resolve the balance legally.