Glossary

CP28A Notice

The CP28A notice is sent by the IRS to inform taxpayers that an adjustment has been made to their tax account, resulting in a credit. This notice provides updates on the taxpayer’s balance and any implications of the credit.

Key points about CP28A:

The notice specifies the amount credited and explains the reason for the adjustment.
Taxpayers are encouraged to review their account status and verify that the adjustment is accurate.
The notice may include instructions on how to apply the credit toward future tax payments or request a refund.

Receiving CP28A helps taxpayers stay informed about their tax account and ensures that necessary actions are taken to address outstanding balances or refunds.

Recommendation

Letter 4387: Request for Extension of Time to Pay Tax Due

IRS Letter 4387 notifies taxpayers whether their request for an extension of time to pay their tax debt has been approved or denied and outlines the next steps.

CP30 Notice: Penalty for Underpayment of Estimated Tax

The IRS CP30 Notice notifies taxpayers that they owe a penalty due to underpayment of estimated taxes, along with instructions for payment.

Barred Refund Claim

A barred refund claim is a request for a tax refund made after the deadline for claiming the refund has passed, preventing the taxpayer from receiving the refund.

IRS Form 8862: Information to Claim Earned Income Credit After Disallowance

IRS Form 8862 allows taxpayers to reclaim the Earned Income Tax Credit (EITC) after it was previously disallowed by the IRS.

CP90 Notice – Final Notice of Intent to Levy and Notice of Your Right to a Hearing

IRS Notice CP90 is the Final Notice of Intent to Levy, which gives you the right to a hearing before the IRS seizes your assets to satisfy unpaid tax debt.

CP21A Notice: Changes to Your Return; Balance Due

The IRS CP21A Notice informs taxpayers that their return was adjusted, resulting in additional tax owed.

CP504B Notice: Intent to Levy on State Tax Refund

IRS CP504B Notice warns taxpayers of a pending levy on their state tax refund to satisfy unpaid federal tax debt, providing last-minute options to prevent the levy.

Dependent Exemption

The dependent exemption allowed taxpayers to reduce their taxable income for each qualifying dependent before it was suspended by tax reform in 2018.

Tax Garnishment

Tax garnishment is a legal process through which the IRS seizes a portion of a taxpayer’s wages, bank accounts, or other assets to satisfy unpaid tax debts.

IRS Audit

An IRS audit is a review of a taxpayer’s financial records and tax return to ensure compliance with tax laws, often triggered by errors or inconsistencies.