Glossary

CP40 Notice

The CP40 notice is sent by the IRS to inform taxpayers about the status of their request for a payment plan. This notice outlines whether the request has been approved or denied, along with any relevant details regarding the terms of the plan.

Key points about CP40:

The notice specifies the monthly payment amount and due dates if the request is approved.
If denied, the notice explains the reasons for the denial and what steps the taxpayer can take to appeal the decision or reapply.
Taxpayers are encouraged to review the notice and contact the IRS if they have questions or need further assistance.

Receiving CP40 helps taxpayers understand their options for managing tax debt through structured payments.

Recommendation

Letter 4903: Request for Employment Tax Payment

IRS Letter 4903 is sent to employers with unpaid employment tax, requesting prompt payment to avoid additional charges and potential enforcement actions.

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.

CP60 Notice

The CP60 notice informs taxpayers that their refund has been adjusted due to underreported income or discrepancies in their return.

Currently Not Collectible (CNC)

Currently Not Collectible (CNC) status temporarily suspends IRS collection actions for taxpayers who cannot afford to pay their tax debt.

CP210 Notice

IRS CP210 informs taxpayers that adjustments have been made to their account, which may result in a balance due, credit, or refund.

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.

Substitute for Return (SFR)

An IRS Substitute for Return (SFR) is filed by the IRS on behalf of a taxpayer who fails to submit a required tax return.

CP39 Notice

IRS CP39 notifies taxpayers that their current-year refund has been applied to a prior year’s unpaid tax debt.

Capital Loss Carryover

Capital loss carryover lets taxpayers apply capital losses from one year to offset capital gains or ordinary income in future tax years.

Letter 1058A: Notice of Intent to Levy on Specific Property

IRS Letter 1058A informs taxpayers that the IRS intends to levy specific property, like real estate or other assets, unless the tax debt is resolved.