Glossary

CP76A Notice

The CP76A notice is issued by the IRS to remind taxpayers of potential underpayment of estimated taxes for the year. This notice serves as a warning that the taxpayer may be subject to penalties and interest due to insufficient estimated tax payments.

Key points about CP76A:

The notice details the estimated tax that should have been paid and indicates the amount of underpayment.
Taxpayers are encouraged to make an estimated tax payment to cover the shortfall and avoid further penalties.
The notice may provide information on how to calculate estimated taxes correctly in the future.

Receiving CP76A prompts taxpayers to review their estimated tax payments and take appropriate action to ensure compliance.

Recommendation

IRS Notice CP14: Balance Due

IRS Notice CP14 is the first notice sent by the IRS informing you of a balance due for unpaid taxes and includes instructions for resolving your debt.

CP71A Notice: Annual Reminder of Balance Due

IRS CP71A Notice is an annual update for taxpayers with unpaid taxes, detailing the remaining balance and steps for resolving the debt.

Failure to File Penalty

The IRS Failure to File Penalty is imposed on taxpayers who fail to file their tax return by the due date, typically 5% of the unpaid tax for each month

Letter 3228C: Request for Additional Information Regarding Offer in Compromise

IRS Letter 3228C asks taxpayers for more information to support their offer in compromise application, including documentation on income, assets, and liabilities.

Trust Fund Recovery Penalty (TFRP)

The Trust Fund Recovery Penalty (TFRP) is imposed on individuals responsible for unpaid payroll taxes, including Social Security and Medicare taxes.

Filing Status

Filing status defines a taxpayer’s tax rates, standard deduction, and eligibility for credits, based on their marital and household situation.

CP3219B Notice: Notice of Deficiency with Right to Petition Tax Court

IRS CP3219B Notice alerts taxpayers of a tax deficiency and provides instructions for petitioning the Tax Court to dispute the assessment.

IRS Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return

IRS Form 940 is filed annually by employers to report and pay the Federal Unemployment Tax (FUTA) for their employees.

CP153 Notice

The CP153 notice informs taxpayers that their refund cannot be issued via direct deposit, and the IRS will send a paper check instead.

CP23A Notice: Estimated Payment Discrepancy

The IRS CP23A Notice informs taxpayers of discrepancies in estimated tax payments, potentially affecting their refund or resulting in a balance due.