Glossary

CP504A Notice

The CP504A notice is issued by the IRS to inform taxpayers that they intend to levy their state tax refund to satisfy unpaid federal taxes. This notice serves as a warning that further collection actions may follow if the taxpayer does not resolve their tax debt.

Key points in CP504A:

The notice specifies the amount owed, including any penalties and interest, and indicates that the state tax refund will be levied unless payment is made.
Taxpayers can avoid the levy by paying the balance in full, negotiating a payment plan, or requesting a Collection Due Process (CDP) hearing.
The notice includes contact information for the IRS and instructions for resolving the issue.

Taxpayers receiving CP504A should act quickly to prevent the levy from being executed and to address their tax debt.

Recommendation

Treasury Offset Program (TOP)

The Treasury Offset Program (TOP) allows the IRS to apply a taxpayer’s refund toward unpaid federal or state debts, such as back taxes or student loans.

Letter 525: General 30-Day Letter

IRS Letter 525 notifies taxpayers of proposed changes to their tax return and provides 30 days to accept the changes or file an appeal.

CP75A Notice

The CP75A notice is sent by the IRS to request additional documentation to verify eligibility for Earned Income Credit (EIC) or other tax benefits.

CP39 Notice: Refund Applied to Past Due Taxes

IRS CP39 Notice notifies taxpayers that their refund has been applied to a prior year’s unpaid tax debt instead of being issued as a refund.

CP40 Notice

The CP40 notice informs taxpayers of the outcome of their request for a payment plan, including any details regarding approval or denial.

Letter 3219B: Statutory Notice of Deficiency – Proposed Adjustments to Return

IRS Letter 3219B notifies taxpayers of proposed adjustments to their return, resulting in a tax deficiency, and offers the option to challenge the changes in tax court.

Trust Fund Penalty

The trust fund penalty is a personal liability imposed on individuals responsible for collecting and paying payroll taxes but who fail to do so.

Letter 2050: Request to Contact IRS for Unpaid Taxes

IRS Letter 2050 asks taxpayers to contact the IRS about resolving their unpaid taxes to avoid more aggressive collection actions.

IRS Notice CP521: Installment Agreement Reminder Notice

IRS Notice CP521 is sent to remind taxpayers of their upcoming Installment Agreement payment and the due date.

Wage Garnishment

IRS wage garnishment is a collection action that allows the IRS to take a portion of your wages directly from your employer to satisfy unpaid tax debt.