Glossary

CP23A Notice

The CP23A notice is issued by the IRS to inform taxpayers that adjustments have been made to their tax return, leading to a revised balance due or refund amount. This notice explains the changes made and their implications for the taxpayer.

Key points about CP23A:

The notice details the adjustments and how they affect the taxpayer’s overall tax liability.
It may include instructions for addressing any balance owed or the process for claiming a revised refund.
Taxpayers are encouraged to review the notice and ensure that all information is accurate.

Receiving CP23A helps taxpayers stay informed about their tax situation and ensures compliance with IRS requirements.

Recommendation

CP503F Notice: Urgent Reminder for Tax Debt Payment

IRS CP503F Notice is an urgent reminder for taxpayers with unpaid tax debt, providing last-minute options to settle or arrange payment.

Letter 2275C: Installment Agreement Reinstatement Approved

IRS Letter 2275C notifies taxpayers that their request to reinstate an installment agreement has been approved and outlines the updated terms.

CP259E Notice: Return Not Filed – Exempt Organization

IRS CP259E Notice notifies exempt organizations of a missing return, encouraging filing to avoid penalties or loss of status.

CP13R Notice

IRS CP13R informs taxpayers that changes have been made to the Recovery Rebate Credit on their return, resulting in no balance due.

Tax Levy

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

Tax Credit

A tax credit directly reduces a taxpayer’s tax liability, potentially resulting in a refund or lowering the amount of taxes owed.

401(k) Contribution Limit

The 401(k) contribution limit sets the maximum amount employees can contribute to their employer-sponsored retirement plan each year, offering significant tax benefits.

Refundable Tax Credit

A refundable tax credit can reduce a taxpayer’s liability to zero and generate a refund for any amount of the credit that exceeds the taxes owed.

Offer in Compromise (OIC)

An IRS Offer in Compromise (OIC) allows taxpayers to settle their tax debt for less than the full amount owed based on their financial situation.

Uncollectible Status (Currently Not Collectible)

Currently Not Collectible (CNC) status is a designation that temporarily stops IRS collection actions for taxpayers unable to pay their tax debt.