Glossary

CP02 Notice

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The CP02 notice is issued by the IRS to inform taxpayers of important changes to their tax account status. This may include updates on refunds, changes in balances due, or corrections made to previous filings.

Key points about CP02:

The notice details the specific changes made and how they affect the taxpayer’s account.
It may provide information on additional actions required by the taxpayer, such as making payments or submitting further documentation.
Taxpayers are encouraged to review the notice carefully and take any necessary steps to address the changes.

Receiving CP02 helps taxpayers stay informed about their tax situation and ensure compliance with IRS requirements.

Recommendation

Certified Mail for IRS Notices

The IRS uses certified mail to send important tax notices, ensuring proof of delivery and tracking of critical correspondence, such as levy or lien notices.

CP153 Notice

The CP153 notice informs taxpayers that their refund cannot be issued via direct deposit, and the IRS will send a paper check instead.

Tax Levy

A tax levy allows the IRS to seize a taxpayer’s assets, including wages and bank accounts, to satisfy unpaid tax debt.

Form 8822 – Change of Address

Form 8822 – Change of Address is crucial in updating taxpayer information for tax purposes.

Form 1099-B – Proceeds from Broker and Barter Exchange Transactions (reiterated for digital asset transactions)

Form 1099-B is essential for reporting taxable digital asset transactions for tax compliance.

Form 8275 – Disclosure Statement (noted for tax positions requiring detailed disclosure)

Form 8275 is crucial for disclosing detailed tax positions and is essential for tax compliance.

Form 8283 – Noncash Charitable Contributions (reiterated for detailed reporting)

Form 8283 – Noncash Charitable Contributions is essential for reporting noncash donations on tax returns.

Form 4797 – Sales of Business Property (previously noted but central here for business property dispositions)

Form 4797 – Sales of Business Property is crucial for reporting dispositions of business assets for tax purposes.

Form 8845 – Indian Employment Credit

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Tax Extension

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