Glossary

IRS Form 1040: U.S. Individual Income Tax Return

IRS Form 1040 is the standard tax form used by individuals in the United States to file their annual federal income tax return. The form reports the taxpayer’s income, deductions, and tax credits to calculate the amount of tax owed or the refund due.

Taxpayers use Form 1040 to report:

Wages, salaries, tips, and other forms of earned income.
Interest, dividends, and other investment income.
Tax credits and deductions (such as the Child Tax Credit, Earned Income Credit, or deductions for medical expenses).

There are several variations of Form 1040, including Form 1040-SR (for seniors) and Form 1040-NR (for nonresident aliens), to accommodate different taxpayer situations.

Form 1040 must be filed by April 15 each year (or the next business day if it falls on a weekend or holiday), and taxpayers may request an extension to file by October 15 by submitting Form 4868.

Recommendation

Tax Credit

A tax credit directly reduces a taxpayer’s tax liability, potentially resulting in a refund or lowering the amount of taxes owed.

CP14A Notice: Additional Balance Due on Prior Year Taxes

The IRS CP14A Notice informs taxpayers of additional taxes due from a prior year and provides payment options.

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.

IRS Notice of Deficiency

An IRS Notice of Deficiency is a legal notice informing taxpayers that they owe additional taxes and have the right to dispute the amount.

Letter 6152: Notice of Federal Tax Lien Filed

IRS Letter 6152 notifies taxpayers that a federal tax lien has been filed against their property due to unpaid taxes and outlines steps to resolve the lien.

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.

Substitute for Return (SFR)

An IRS Substitute for Return (SFR) is filed by the IRS on behalf of a taxpayer who fails to submit a required tax return.

Tax Deduction

A tax deduction reduces a taxpayer’s taxable income, thereby lowering their overall tax liability.

CP39 Notice

IRS CP39 notifies taxpayers that their current-year refund has been applied to a prior year’s unpaid tax debt.

CP504C Notice: Final Notice of Intent to Levy on Social Security Benefits

IRS CP504C Notice warns taxpayers that the IRS will begin levying a portion of their Social Security benefits unless they resolve their unpaid tax debt.