Glossary

CP75A Notice

The CP75A notice is sent by the IRS when it needs more information to verify a taxpayer’s claim for the Earned Income Credit (EIC) or other tax benefits. The taxpayer is required to submit additional documentation to prove their eligibility.

Key points about CP75A:

The notice lists the specific documents the taxpayer needs to provide, such as proof of income, residency, or dependency for claiming the EIC.
The IRS places the refund on hold until the requested documents are received and reviewed.
Failure to respond promptly could lead to denial of the credit and the taxpayer owing additional taxes.

Taxpayers receiving CP75A should gather the required documents and respond quickly to ensure that they receive the benefits they are eligible for.

Recommendation

CP03A Notice

IRS CP03A is sent to notify taxpayers that their tax return is being processed, including information on expected refund timelines.

IRS Form 8862: Information to Claim Earned Income Credit After Disallowance

IRS Form 8862 allows taxpayers to reclaim the Earned Income Tax Credit (EITC) after it was previously disallowed by the IRS.

CP30A Notice: Removal of Underpayment Penalty

The IRS CP30A Notice informs taxpayers that the underpayment penalty previously assessed has been removed.

IRS Form 2848: Power of Attorney and Declaration of Representative

IRS Form 2848 is used to grant power of attorney to a representative, allowing them to act on your behalf in IRS tax matters.

Letter 3127C

IRS Letter 3127C confirms that changes have been made to an existing Installment Agreement, including revised payment amounts and due dates.

Corporate Tax Rate

The corporate tax rate is the percentage of income that corporations must pay to the federal government as tax, currently set at 21%.

Shared Responsibility Payment (SRP)

The Shared Responsibility Payment (SRP) was a penalty under the Affordable Care Act for individuals who did not have qualifying health insurance.

CP71A Notice

IRS CP71A is an annual reminder that a taxpayer has an unpaid balance, detailing the total amount owed, including penalties and interest.

Certified Mail for IRS Notices

The IRS uses certified mail to send important tax notices, ensuring proof of delivery and tracking of critical correspondence, such as levy or lien notices.

Delinquent Return

A delinquent tax return is a return that was not filed on time, which may result in penalties, interest, and enforcement actions by the IRS.