Glossary

CP13 Notice

The CP13 notice is issued by the IRS to inform taxpayers that adjustments have been made to their tax return. These adjustments may result from various factors, including overpayments or corrections made by the IRS during the review process.

Key points about CP13:

The notice explains the nature of the adjustments made and details any changes to the taxpayer’s balance, which may include additional amounts owed or a refund due.
Taxpayers are encouraged to review the changes carefully and ensure that they understand how their balance was affected.
If taxpayers disagree with the adjustments made, they have the right to appeal the decision.

Taxpayers receiving a CP13 notice should act promptly to address any balance due or confirm the overpayment to ensure that their tax records are accurate.

Recommendation

Nonrefundable Tax Credit

A nonrefundable tax credit can reduce a taxpayer’s liability to zero but cannot generate a refund if the credit exceeds the amount of taxes owed.

IRS Letter 3172: Notice of Federal Tax Lien Filing and Your Right to a Hearing

IRS Letter 3172 is a notice that a federal tax lien has been filed against your property, giving the IRS a legal claim to your assets.

Statute of Limitations on IRS Collections

The statute of limitations on IRS collections is typically 10 years, after which the IRS can no longer pursue unpaid tax debt, unless certain actions extend the period.

CP30A Notice: Removal of Underpayment Penalty

The IRS CP30A Notice informs taxpayers that the underpayment penalty previously assessed has been removed.

CP3219N Notice: Notice of Deficiency

IRS CP3219N Notice notifies taxpayers of additional taxes owed based on proposed adjustments and offers the right to challenge the deficiency in tax court.

Tax Refund Offset

A tax refund offset occurs when the IRS applies a taxpayer’s refund to unpaid debts, such as back taxes or student loans.

CP297 Notice: Final Notice of Intent to Levy and Notice of Your Right to a Hearing

The IRS CP297 Notice is a final warning that the IRS intends to levy assets due to unpaid taxes, with instructions on how to request a hearing to dispute the

IRS Form 12153: Request for a Collection Due Process (CDP) Hearing

IRS Form 12153 is used to request a Collection Due Process (CDP) hearing to appeal IRS enforcement actions, such as liens or levies.

Letter 3477: Tax Lien Discharge or Subordination

IRS Letter 3477 notifies taxpayers of the status of their request for a tax lien discharge or subordination, and outlines next steps.

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.