Glossary

CP16 Notice

The CP16 notice is sent by the IRS when they have found a miscalculation on a taxpayer’s return. This notice informs the taxpayer that the IRS has corrected the return, which may result in an adjusted balance owed or an adjusted refund.

Key points about CP16:

It explains the discrepancies found on the tax return, such as calculation errors in reported income, deductions, or credits.
The notice details how much more (or less) tax is owed or how much the refund has been adjusted.
Taxpayers are encouraged to review the notice and contact the IRS if they disagree with the corrections.

Taxpayers receiving CP16 should check their original return and the IRS’s explanation carefully. If the taxpayer agrees with the changes, no further action is required unless a balance is due.

Recommendation

Estimated Tax Payments

Estimated tax payments are required for taxpayers who do not have taxes withheld from their income, such as self-employed individuals, to avoid penalties.

IRS Form 2848: Power of Attorney and Declaration of Representative

IRS Form 2848 is used to grant power of attorney to a representative, allowing them to act on your behalf in IRS tax matters.

CP14H Notice: Health Coverage Tax Credit Balance Due

IRS CP14H Notice informs taxpayers that they have a balance due related to the Health Coverage Tax Credit (HCTC) and provides steps for payment.

Statutory Notice of Deficiency

A Statutory Notice of Deficiency is an official IRS notification that a taxpayer owes additional taxes, with an opportunity to dispute the assessment in Tax Court.

CP14 Notice: Balance Due Notification

The IRS CP14 Notice informs taxpayers that they have a balance due and provides instructions for payment or dispute.

Wage Levy

A wage levy allows the IRS to garnish a portion of your paycheck to collect unpaid tax debt, continuing until the debt is paid or resolved.

Letter 3753: Self-Employed Tax Debt Notice

IRS Letter 3753 notifies self-employed taxpayers of unpaid taxes and provides options for paying or resolving the debt.

CP71C Notice: Annual Reminder of Balance Due on Tax Debt

IRS CP71C Notice serves as an annual reminder to taxpayers that they have an outstanding balance due on their tax debt and provides payment instructions.

CP508C Notice

IRS CP508C notifies taxpayers that their passport eligibility is in jeopardy due to seriously delinquent tax debt and provides steps to resolve the issue.

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.