Glossary

CP22A Notice

The CP22A notice is issued by the IRS to inform taxpayers that a change has been made to their tax return, and as a result, they now have a balance due. The changes are often made due to adjustments or corrections based on additional information provided or discovered after the original return was filed.

Key points about CP22A:

The notice outlines the adjustments made to the return and provides a detailed explanation of how the new balance was calculated.
Taxpayers are given instructions on how to pay the balance and the due date for payment.
Failure to pay the balance by the due date may result in additional penalties and interest.

Taxpayers receiving CP22A should review the notice carefully and verify the IRS’s adjustments. If they agree with the changes, they should make arrangements to pay the balance by the due date to avoid further penalties.

Recommendation

Self-Employment Tax Deduction

The self-employment tax deduction allows self-employed taxpayers to deduct the employer-equivalent portion of their self-employment taxes, reducing their taxable income.

Tax Relief

Tax relief includes measures that reduce the amount of taxes owed, such as credits, deductions, payment plans, or offers in compromise for eligible taxpayers.

CP48 Notice

The CP48 notice alerts taxpayers to potential discrepancies in their tax return, prompting them to review their filings.

Tax Deduction

A tax deduction reduces a taxpayer’s taxable income, thereby lowering their overall tax liability.

CP503D Notice: Demand for Immediate Payment of Business Tax Debt

IRS CP503D Notice requires immediate payment of unpaid business taxes, warning of enforcement actions for non-payment.

CP39 Notice: Refund Applied to Previous Year Taxes

The IRS CP39 Notice informs taxpayers that their refund has been applied to a previous year’s tax debt instead of being issued as a refund.

CP44 Notice: Refund Withheld Pending Review

The IRS CP44 Notice informs taxpayers that their refund is being withheld pending an IRS review of their tax account or return.

Form W-2: Wage and Tax Statement

Form W-2 is issued by employers to report wages, tips, and taxes withheld for each employee, and it is used to prepare annual tax returns.

CP18 Notice

IRS CP18 notifies taxpayers that deductions or credits claimed on their return appear incorrect, and the IRS will review or adjust the return accordingly.

Tax Lien

A tax lien is a legal claim placed by the IRS on a taxpayer’s property, giving the government the right to collect unpaid taxes from the property’s value.