Glossary

CP60 Notice

The CP60 notice is sent by the IRS to inform taxpayers that their refund has been adjusted due to underreported income or discrepancies found in their tax return. This notice serves as an alert that the taxpayer may owe additional taxes.

Key points about CP60:

The notice outlines the reasons for the adjustment, including details about the specific discrepancies.
Taxpayers are encouraged to review their return and the notice carefully to understand how their refund was affected.
The notice includes instructions for making payments if a balance is owed as a result of the adjustment.

Receiving CP60 requires taxpayers to act quickly to address any discrepancies and avoid further penalties.

Recommendation

Letter 3753: Self-Employed Tax Debt Notice

IRS Letter 3753 notifies self-employed taxpayers of unpaid taxes and provides options for paying or resolving the debt.

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.

CP58A Notice

The CP58A notice follows up on the eligibility for the Earned Income Credit (EIC), providing additional information or reminders for taxpayers.

W-4 Form

A W-4 form allows employees to inform their employer of how much federal income tax should be withheld from their paycheck based on their filing status and dependents.

Filing Deadline

The filing deadline is the date by which taxpayers must file their tax returns or request an extension to avoid late-filing penalties.

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.

Amortization

Amortization is the process of gradually deducting the cost of an intangible asset over its useful life for tax purposes.

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.

CP14 Notice – Balance Due

IRS Notice CP14 is sent to inform taxpayers that they owe unpaid taxes. It provides a breakdown of the balance and how to resolve it.

IRS Form 12153: Request for a Collection Due Process (CDP) Hearing

IRS Form 12153 is used to request a Collection Due Process (CDP) hearing to appeal IRS enforcement actions, such as liens or levies.