Glossary

CP28 Notice

The CP28 notice is sent by the IRS to notify taxpayers that there is a balance due on their account as a result of discrepancies identified during the review of their tax return. This notice provides details on the amount owed and any actions the taxpayer should take.

Key points about CP28:

The notice outlines the specific discrepancies that led to the balance due, including adjustments made by the IRS.
Taxpayers are encouraged to review the notice and contact the IRS if they believe the balance is incorrect.
The notice includes instructions for paying the balance or setting up a payment arrangement.

Taxpayers receiving CP28 should act promptly to address the balance due to avoid further penalties and interest.

Recommendation

CP48 Notice

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

Collection Statute Expiration Date (CSED)

The Collection Statute Expiration Date (CSED) is the date when the IRS’s 10-year window to collect unpaid taxes expires, and the debt is no longer enforceable.

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a tax credit designed to help low- to moderate-income taxpayers by reducing their tax liability.

Delinquent Return

A delinquent tax return is a return that was not filed on time, which may result in penalties, interest, and enforcement actions by the IRS.

CP297A Notice: Final Notice of Intent to Levy on Social Security Benefits

IRS CP297A Notice is a final notice informing taxpayers of an impending levy on Social Security benefits due to unpaid taxes, with options to prevent levy actions.

CP523I Notice: Installment Agreement Default – Intent to Terminate and Levy Income

IRS CP523I Notice notifies taxpayers of a default in their installment agreement and warns of income levies if the account is not brought current.

Failure to File Penalty

The IRS Failure to File Penalty is imposed on taxpayers who fail to file their tax return by the due date, typically 5% of the unpaid tax for each month

IRS Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return

IRS Form 940 is filed annually by employers to report and pay the Federal Unemployment Tax (FUTA) for their employees.

CP259E Notice: Return Not Filed – Exempt Organization

IRS CP259E Notice notifies exempt organizations of a missing return, encouraging filing to avoid penalties or loss of status.

IRS Form 2848: Power of Attorney and Declaration of Representative

IRS Form 2848 is used to grant power of attorney to a representative, allowing them to act on your behalf in IRS tax matters.