Glossary

CP71 Notice

The CP71 notice is an annual reminder sent by the IRS to taxpayers with an unpaid balance on their tax account. This notice provides a summary of the taxes, penalties, and interest that remain unpaid and encourages the taxpayer to take action to resolve the debt.

Key points in CP71:

The notice provides an updated balance, including any accrued interest and penalties since the last statement.
It outlines payment options, including the ability to set up an Installment Agreement or pay the balance in full.
Taxpayers who do not resolve the balance may face further IRS collection actions, such as liens or levies.

Receiving CP71 is a reminder that the taxpayer still owes a balance and should take steps to address the debt before additional penalties accrue.

Recommendation

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.

CP503D Notice: Demand for Immediate Payment of Business Tax Debt

IRS CP503D Notice requires immediate payment of unpaid business taxes, warning of enforcement actions for non-payment.

Amended Tax Return

An amended tax return is filed to correct errors or omissions on a previously submitted tax return, using IRS Form 1040-X.

Amended Return (Form 1040X)

An Amended Return allows taxpayers to correct mistakes on a previously filed tax return by using IRS Form 1040X.

Form 4868: Application for Automatic Extension of Time to File UIndividual Income Tax Return

IRS Form 4868 grants taxpayers an automatic six-month extension to file their federal income tax return.

Tax Lien

A tax lien is a legal claim placed by the IRS on a taxpayer’s property, giving the government the right to collect unpaid taxes from the property’s value.

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.

Levy Release

A levy release stops the IRS from seizing assets, such as wages or bank accounts, to satisfy unpaid tax debt.

Letter 1058: Final Notice of Intent to Levy and Right to a Hearing

The IRS Letter 1058 informs taxpayers that the IRS will levy their property or wages unless they resolve their outstanding tax debt and request a hearing.

CP148 Notice

IRS CP148 is sent to taxpayers when there is a mismatch between the name or Social Security Number provided on the return and the IRS’s records.