Glossary

CP18 Notice

The CP18 notice is sent by the IRS when it believes that certain deductions or credits claimed on a taxpayer’s return may be incorrect. This notice informs the taxpayer that the IRS will review these items and possibly adjust the return based on their findings.

Key points about CP18:

It alerts taxpayers that specific deductions, credits, or other items on their return appear to be inaccurate or improperly claimed.
The IRS will investigate the discrepancy and may adjust the return, leading to a revised balance owed or an adjusted refund.
Taxpayers are given the opportunity to respond to the notice if they disagree with the IRS’s findings.

Taxpayers should review the CP18 notice carefully and provide any documentation supporting their claims to avoid an unfavorable adjustment. Ignoring the notice could result in the IRS adjusting the return without input from the taxpayer.

Recommendation

Levy Release

A levy release stops the IRS from seizing assets, such as wages or bank accounts, to satisfy unpaid tax debt.

CP31 Notice: Refund Check Returned

The IRS CP31 Notice informs taxpayers that their refund check was returned and provides instructions for claiming the refund.

CP18 Notice: Discrepancies in Claimed Credits

The IRS CP18 Notice informs taxpayers of discrepancies in claimed credits and details any adjustments made to the return.

IRS CP45 Notice

The IRS CP45 Notice notifies taxpayers that their tax refund is delayed due to errors or discrepancies identified on their return. It details the steps needed to resolve the issue

Letter 2802C: Request for Taxpayer’s Signature on Return

IRS Letter 2802C notifies taxpayers that their return lacks a required signature and provides instructions to sign and resubmit.

CP12 Notice: Changes to Your Tax Return – Refund or Balance Due

IRS CP12 Notice informs taxpayers of changes made to their tax return due to miscalculations, and explains if a refund is due or a balance is owed.

1099 Form

A 1099 form reports various types of income earned from non-wage sources, such as freelance work, investment income, or self-employment.

Tax Withholding

Tax withholding is the process of automatically deducting income taxes from your wages, which are then sent to the IRS on your behalf.

CP39 Notice

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

IRS Form 8379: Injured Spouse Allocation

IRS Form 8379 is used by an injured spouse to reclaim their share of a joint tax refund if it was applied to their spouse’s tax debt.