Glossary

CP49 Notice

The CP49 notice is sent by the IRS to notify taxpayers that their current-year refund has been applied to a prior-year tax debt. This notice explains how much of the refund was used to satisfy the previous year’s balance.

Key points about CP49:

The notice provides a breakdown of the refund amount and how much was applied to the prior year’s debt.
It specifies the remaining balance, if any, and provides instructions on how to handle any remaining debt.
Taxpayers should review the notice carefully to verify the accuracy of the offset and contact the IRS if they believe the refund was incorrectly applied.

CP49 notices are issued when the IRS applies a taxpayer’s refund to previous tax liabilities, reducing or eliminating the refund amount.

Recommendation

Letter 3179: Request for Documentation for Innocent Spouse Relief

IRS Letter 3179 asks taxpayers to provide additional information or documentation to support their Innocent Spouse Relief claim, which can relieve them of joint tax liability.

CP27 Notice: Earned Income Credit Eligibility

The IRS CP27 Notice notifies taxpayers of potential eligibility for the Earned Income Credit and provides instructions on how to claim it.

IRS Notice CP501: Reminder Notice of Balance Due

IRS Notice CP501 is a reminder notice that informs taxpayers of an unpaid balance and warns of further penalties if not resolved.

CP71A Notice: Annual Reminder of Tax Debt and Payment Options

The IRS CP71A Notice serves as an annual reminder of a taxpayer’s outstanding tax debt and provides payment options to resolve the balance.

CP251 Notice

The CP251 notice informs taxpayers of discrepancies between their estimated tax payments and the IRS’s records, requesting that they reconcile the differences.

CP49 Notice: Overpayment Applied to Previous Tax Debt

The IRS CP49 Notice informs taxpayers that their refund or overpayment has been used to pay off a previous year’s tax debt.

CP13R Notice

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

CP21 Notice

The CP21 notice notifies taxpayers that a change has been made to their tax account, which may affect their balance due or refund amount.

IRS Audit

An IRS audit is a review of a taxpayer’s financial records and tax return to ensure compliance with tax laws, often triggered by errors or inconsistencies.

IRS Form 656: Offer in Compromise

IRS Form 656 is used to apply for an Offer in Compromise, allowing taxpayers to settle their IRS tax debt for less than what they owe.