Glossary

Certified Mail for IRS Notices

The IRS uses certified mail to send important tax notices to taxpayers, ensuring that the recipient receives the notice and providing proof of delivery. Certified mail is used for critical IRS communications, such as:

Final Notice of Intent to Levy.
Notice of Federal Tax Lien.
Notice of Deficiency.

Certified mail requires the recipient’s signature upon delivery, and the IRS keeps a record of when the notice was sent and received. This is particularly important because many IRS notices have strict deadlines for response or appeal. For example, after receiving a Final Notice of Intent to Levy, the taxpayer has 30 days to take action, such as requesting a Collection Due Process (CDP) hearing.

If taxpayers receive a certified mail notice from the IRS, it’s critical to respond promptly to avoid penalties, levies, or other enforcement actions.

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.

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.

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.

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.

Trust Fund Penalty

The trust fund penalty is a personal liability imposed on individuals responsible for collecting and paying payroll taxes but who fail to do so.

Tax Resolution

Tax resolution is the process of resolving tax debt with the IRS, using methods like payment plans, penalty abatement, or Offers in Compromise.

CP77 Notice

The CP77 notice is sent to notify taxpayers that their refund is being withheld due to unpaid tax debts or other financial obligations.

Amortization

Amortization is the process of gradually deducting the cost of an intangible asset over its useful life for tax purposes.

Lien

A federal tax lien is a legal claim against your property, including real estate, vehicles, and financial assets, for unpaid tax debt.

CP515 Notice: First Notice of Unfiled Return

IRS CP515 Notice informs taxpayers of an unfiled tax return and provides instructions for filing to avoid further penalties.