Glossary

IRS Notice CP2000: Underreported Income

IRS Notice CP2000 is sent to taxpayers when the income reported on their tax return does not match the income reported to the IRS by third parties, such as employers, banks, or other entities that issue W-2s, 1099s, or similar forms. The notice outlines the discrepancies and proposes an adjustment to the taxpayer’s tax liability.

Taxpayers have 30 days to respond to CP2000, and they can:

Agree with the IRS’s findings and pay the additional tax owed.
Disagree with the proposed changes and provide documentation to support their original return.

If no response is received or if the taxpayer does not provide adequate documentation, the IRS will assess the additional tax, and penalties and interest may apply. Responding to CP2000 promptly is essential to avoid further complications or enforcement actions.

Recommendation

Installment Agreement (IA)

An Installment Agreement is a payment plan that allows taxpayers to repay their tax debt over time in monthly installments.

Letter 2802C: Request for Taxpayer’s Signature on Return

IRS Letter 2802C notifies taxpayers that their return lacks a required signature and provides instructions to sign and resubmit.

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.

Refundable Tax Credit

A refundable tax credit can reduce a taxpayer’s liability to zero and generate a refund for any amount of the credit that exceeds the taxes owed.

CP75 Notice: Earned Income Credit Verification Needed

The IRS CP75 Notice informs taxpayers that additional documentation is required to verify their eligibility for the Earned Income Credit (EIC).

Bankruptcy and Tax Debt

Bankruptcy can discharge certain IRS tax debts, but it depends on the type of tax owed and the age of the 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 Notice CP14: Balance Due

IRS Notice CP14 is the first notice sent by the IRS informing you of a balance due for unpaid taxes and includes instructions for resolving your debt.

IRS Form 433-F: Collection Information Statement

IRS Form 433-F is a simplified financial statement used to apply for IRS collection options like Installment Agreements and Currently Not Collectible status.

Certified Mail for IRS Notices

The IRS uses certified mail to send important tax notices, ensuring proof of delivery and tracking of critical correspondence, such as levy or lien notices.