Glossary

Barred Refund Claim

A barred refund claim occurs when a taxpayer attempts to claim a tax refund after the deadline has passed. The IRS has strict time limits on when taxpayers can request refunds, and if a claim is made after this period, it is “barred,” meaning the taxpayer is no longer eligible to receive the refund.

The general rule is that taxpayers must claim a refund within:

Three years from the date the original return was filed, or
Two years from the date the tax was paid, whichever is later.

Refund claims made after these deadlines are barred, and the taxpayer forfeits their right to the refund. To avoid a barred refund claim, taxpayers should file their returns on time and request any refunds within the appropriate timeframe.

Recommendation

CP70 Notice

The CP70 notice alerts taxpayers to potential issues with their tax return that could lead to a balance due or necessary adjustments.

CP49 Notice

IRS CP49 is sent when the IRS applies a taxpayer’s refund to a prior year’s unpaid tax debt.

W-4 Form

A W-4 form allows employees to inform their employer of how much federal income tax should be withheld from their paycheck based on their filing status and dependents.

Tax Lien

A tax lien is a legal claim placed by the IRS on a taxpayer’s property, giving the government the right to collect unpaid taxes from the property’s value.

Write-Off

A tax write-off is an expense that taxpayers can deduct from their taxable income, reducing their overall tax liability.

Reasonable Collection Potential (RCP)

Reasonable Collection Potential (RCP) is the IRS’s estimate of how much a taxpayer can pay toward their tax debt through liquid assets and future income.

CP32A Notice

IRS CP32A notifies taxpayers that their refund check was returned due to an undeliverable address and provides steps to correct the issue.

Tax Forgiveness for the Deceased

Tax forgiveness for the deceased may relieve some tax liabilities if a taxpayer dies with unpaid taxes, though the estate is generally responsible for the debt.

Innocent Spouse Relief

Innocent Spouse Relief protects a spouse from being held liable for taxes owed due to errors or omissions by the other spouse on a joint return.

CP18 Notice

IRS CP18 notifies taxpayers that deductions or credits claimed on their return appear incorrect, and the IRS will review or adjust the return accordingly.