The CP28A notice notifies taxpayers of an adjustment made to their tax account, resulting in a credit that may affect their balance or refund.
A tax deficiency is the difference between the amount of tax the IRS determines you owe and the amount you reported on your return.
A tax offset occurs when the IRS uses a taxpayer’s refund to pay off an outstanding debt, such as unpaid taxes, student loans, or child support.
The IRS CP92 Notice informs taxpayers that their state tax refund has been levied to satisfy federal tax debts, with instructions on next steps.
Tax forgiveness is when the IRS cancels part or all of a taxpayer’s debt, often through an Offer in Compromise or similar program.
Form 1099-C is used by creditors to report canceled or forgiven debt to the IRS, which may be considered taxable income.
A tax credit directly reduces a taxpayer’s tax liability, potentially resulting in a refund or lowering the amount of taxes owed.
FICA is a law requiring payroll taxes for Social Security and Medicare, with contributions shared by employers and employees.
An IRS Substitute for Return (SFR) is filed by the IRS on behalf of a taxpayer who fails to submit a required tax return.
The statute of limitations on tax debt is the time limit during which the IRS can collect unpaid taxes, usually 10 years from the date of assessment.