Glossary

Letter 681C

IRS Letter 681C is sent to taxpayers to confirm that the IRS has accepted a payment arrangement request made by the taxpayer, but it clarifies that the arrangement does not constitute a formal Installment Agreement. This letter outlines the terms under which the IRS has agreed to accept payments and provides instructions for making those payments.

Key points about Letter 681C:

The letter explains that while the payment arrangement has been accepted, the taxpayer may still need to enter into a formal Installment Agreement to resolve their tax debt.
It outlines the payment amount and due dates for each payment.
The taxpayer must continue making payments until a formal agreement is established or the debt is paid in full.

Taxpayers receiving this letter should follow the instructions closely to avoid defaulting on the payment arrangement and facing more aggressive IRS collection actions.

Recommendation

Barred Refund Claim

A barred refund claim is a request for a tax refund made after the deadline for claiming the refund has passed, preventing the taxpayer from receiving the refund.

CP16 Notice

The IRS CP16 notice informs taxpayers that the IRS has amended their return due to a miscalculation, adjusting the balance owed or refunded.

Letter 2274C: Warning of Intent to Terminate Installment Agreement Due to Default

IRS Letter 2274C informs taxpayers that their installment agreement is in danger of termination due to default and provides steps to reinstate it.

Tax Court

The U.S. Tax Court allows taxpayers to dispute IRS assessments and decisions, providing an independent forum for resolving tax controversies.

CP22A Notice

The CP22A notice is sent when the IRS makes changes to a taxpayer’s return, resulting in a balance due.

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.

Letter 6152: Request for Missing Tax Return

IRS Letter 6152 notifies taxpayers that a required tax return is missing and provides steps to submit the return and avoid additional penalties.

CP13 Notice: Refund Reduced or Adjusted

The IRS CP13 Notice informs taxpayers that their refund has been reduced due to corrections made to their return.

Self-Employment Tax

Self-employment tax is a Social Security and Medicare tax that individuals must pay when they work for themselves.

IRS Notice CP2000: Underreported Income

IRS Notice CP2000 is sent when the income reported on your tax return does not match what was reported to the IRS by third parties, requiring an explanation or payment.