Glossary

CP71A Notice

The CP71A notice is an annual reminder sent by the IRS to taxpayers who have an unpaid balance on their account. This notice provides a detailed breakdown of the total amount owed, including any penalties and interest that have accrued since the last notice.

Key points in CP71A:

The notice lists the original amount owed, along with penalties and interest that have accumulated over time.
It provides instructions for paying the balance in full or setting up an Installment Agreement to pay over time.
Taxpayers who ignore this notice may face further enforcement actions, such as levies or liens.

Taxpayers should respond promptly to the CP71A notice to avoid additional penalties and interest on their outstanding balance.

Recommendation

CP86 Notice: Missing Information on Tax Return

The IRS CP86 Notice alerts taxpayers that their tax return is missing essential information and outlines steps for correcting the issue.

CP13R Notice

IRS CP13R informs taxpayers that changes have been made to the Recovery Rebate Credit on their return, resulting in no balance due.

CP291 Notice

IRS CP291 is sent to notify taxpayers that their account has been credited with an overpayment of taxes, providing details on applying the credit.

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.

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.

Reasonable Cause

Reasonable cause is a valid explanation, such as illness or natural disaster, that taxpayers can use to request IRS penalty abatement.

Tax Transcript Request

A tax transcript request is a formal request made to the IRS to obtain a summary of a taxpayer’s return or account, often used for income verification or loan applications.

Letter 3523: Notice of Disallowed Refund Claim

IRS Letter 3523 notifies taxpayers that their refund claim has been disallowed, with details on appealing the decision if necessary.

CP48 Notice

The CP48 notice alerts taxpayers to potential discrepancies in their tax return, prompting them to review their filings.

Tax Offset

A tax offset occurs when the IRS uses a taxpayer’s refund to pay off an outstanding debt, such as unpaid taxes, student loans, or child support.