Glossary

Tax Transcript

A tax transcript is a summary document provided by the IRS that contains key information from a taxpayer’s filed tax return. Unlike a full copy of the return, the transcript provides a simplified version of the data, including:

Adjusted Gross Income (AGI).
Taxable income.
Tax credits and deductions.

Tax return transcripts are often required for applications for financial aid, mortgage loans, or other financial transactions where proof of income or tax history is necessary. Taxpayers can request a transcript for free from the IRS using the Get Transcript tool on the IRS website or by submitting Form 4506-T.

Recommendation

CP49 Notice: Overpayment Applied to Previous Tax Debt

The IRS CP49 Notice informs taxpayers that their refund or overpayment has been used to pay off a previous year’s tax debt.

CP3219B Notice: Notice of Deficiency with Right to Petition Tax Court

IRS CP3219B Notice alerts taxpayers of a tax deficiency and provides instructions for petitioning the Tax Court to dispute the assessment.

IRS Collection Process

The IRS collection process involves multiple stages, including notices, levies, and liens, to recover unpaid taxes from individuals and businesses.

CP523 Notice: Installment Agreement Defaulted

The IRS CP523 Notice informs taxpayers that their installment agreement is in default due to missed payments or other reasons, and outlines next steps to avoid collection actions.

CP259E Notice: Return Not Filed – Exempt Organization

IRS CP259E Notice notifies exempt organizations of a missing return, encouraging filing to avoid penalties or loss of status.

CP13R Notice: Recovery Rebate Credit Adjusted

The IRS CP13R Notice informs taxpayers that adjustments were made to the Recovery Rebate Credit claimed on their return.

Form 843: Claim for Refund and Request for Abatement

IRS Form 843 allows taxpayers to request a refund or abatement of penalties and interest due to reasonable cause or IRS error.

Unfiled Tax Returns Consequences

Unfiled tax returns can lead to IRS penalties, interest, and enforcement actions, including substitute returns, liens, and levies.

Letter 4387: Request for Extension of Time to Pay Tax Due

IRS Letter 4387 notifies taxpayers whether their request for an extension of time to pay their tax debt has been approved or denied and outlines the next steps.

CP71 Notice

IRS CP71 is an annual reminder that a taxpayer has an unpaid balance on their account, including a breakdown of taxes, penalties, and interest owed.