Glossary

CP251 Notice

The CP251 notice is sent by the IRS to notify taxpayers of discrepancies between the estimated tax payments they reported on their return and the payments recorded in the IRS’s system. This notice serves as a request for the taxpayer to reconcile the differences and resolve any miscalculations.

Key points in CP251:

It lists the amounts reported by the taxpayer and those recorded by the IRS, highlighting any inconsistencies.
The taxpayer is required to review their payment records and provide documentation if they believe the IRS’s records are incorrect.
Failure to resolve the discrepancies could result in penalties and interest on underpaid taxes.

Taxpayers should respond to CP251 promptly by checking their payment history and ensuring that all payments are accurately recorded by the IRS.

Recommendation

CP14 Notice: Balance Due Notification

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

CP259 Notice: Return Delinquency Notice

The IRS CP259 Notice warns taxpayers that they have not filed a required tax return and outlines steps to file and avoid penalties or further enforcement actions.

Form 433-B: Collection Information Statement for Businesses

IRS Form 433-B is used by businesses to disclose financial details when applying for IRS payment plans or offers in compromise.

CP80 Notice: Unfiled Tax Return and Credit on Account

The IRS CP80 Notice notifies taxpayers that they have a credit on their account but must file a tax return for the year in question to claim it.

CP2000 Notice: Underreporter Inquiry

IRS CP2000 Notice notifies taxpayers of income discrepancies and proposes additional tax owed if no adjustments are made.

CP161 Notice: Balance Due on Business Taxes

The IRS CP161 Notice informs businesses of an outstanding balance due on their tax return and provides instructions for paying the amount owed.

Letter 1058A: Notice of Intent to Levy on Specific Property

IRS Letter 1058A informs taxpayers that the IRS intends to levy specific property, like real estate or other assets, unless the tax debt is resolved.

Underpayment Penalty

The IRS underpayment penalty is imposed when taxpayers fail to pay enough estimated taxes or withholdings during the year, leading to fines and interest.

CP23 Notice

The CP23 notice notifies taxpayers of discrepancies between their estimated tax payments reported and those in the IRS’s records, which may result in a balance due.

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.