Glossary

CP89 Notice

What is a CP89 Notice from the IRS?

A CP89 Notice is an official communication from the Internal Revenue Service (IRS) informing you that they’ve applied all or part of your tax refund to pay off a past-due debt you owe to a federal agency. This debt could be for things like student loans, unpaid taxes from previous years, or other federal obligations.

Glossary Article

Recommended for You

Veteran-Owned Small Business Credit

The Veteran-Owned Small Business Credit is a tax incentive designed to support veteran entrepreneurs by offering tax benefits to qualifying businesses.

Energy-Efficient Vehicle Manufacturing Credit

The Energy-Efficient Vehicle Manufacturing Credit is a tax incentive designed to encourage the production of eco-friendly vehicles. Manufacturers can obtain financial benefits by meeting certain criteria.

Taxpayer Bill of Rights

Agricultural Irrigation Tax Credit

The Agricultural Irrigation Tax Credit offers financial incentives for farmers and agricultural businesses to adopt efficient irrigation technologies, promoting sustainable water management.

Underpayment Penalty

An underpayment penalty is a fee the IRS charges when you don't pay enough of your taxes throughout the year. It's crucial to understand this penalty to avoid surprise tax bills.

CP523AI Notice

The CP523AI Notice informs taxpayers when their IRS installment agreement is in default. Understanding its implications is critical to maintaining financial compliance.

Financial Disclosure

Financial disclosure in taxation involves reporting assets, liabilities, and income to ensure transparency and compliance with tax regulations.

Residential Clean Energy Equity Credit

The Residential Clean Energy Equity Credit is designed to incentivize homeowners to adopt clean energy solutions, providing tax breaks to enhance energy efficiency and equity.

Form 945 – Annual Return of Withheld Federal Income Tax

Form 945 is the IRS form used to report federal income tax withheld from certain types of non-payroll payments, like pensions and gambling winnings. It’s crucial for businesses and other entities to file this form correctly to avoid potential penalties.

Payment Delinquency

Payment delinquency in taxes occurs when a taxpayer fails to pay their owed tax liability by the due date. It involves various penalties and interest until resolved.

Tribal Renewable Energy Credit

The Tribal Renewable Energy Credit is a tax incentive designed to support sustainable energy projects within tribal lands, promoting energy independence and economic development.

CP521C Notice

The CP521C Notice is sent by the IRS to notify taxpayers about specific payment plan agreements, indicating amounts due and reminding them of their financial obligations.

Installment Agreement (IA)

An Installment Agreement (IA) is an arrangement with the IRS that lets you pay your tax debt over time instead of all at once. It helps taxpayers manage their tax liabilities when they can't afford to pay immediately.

Sponsorship of Industry-Specific Competitions Deduction

The Sponsorship of Industry-Specific Competitions Deduction helps businesses lower taxable income by deducting expenses related to sponsoring events within their industry.

Green Building Development Tax Credit

The Green Building Development Tax Credit incentivizes sustainable building practices by offering tax benefits for eco-friendly construction and renovations.

CP503AL Reminder

The CP503AL Reminder is a crucial IRS notice alerting taxpayers of overdue tax liabilities. Understanding this notice is vital to prevent penalties and interest.

Abatement for Incorrect Alternative Minimum Tax Reporting

Abatement for Incorrect Alternative Minimum Tax Reporting involves procedures to correct errors in AMT filings, preventing penalties and ensuring compliance.

Form 1099-B – Proceeds from Broker and Barter Exchange Transactions

Form 1099-B reports proceeds from sales of stocks, bonds, and other securities, as well as from barter exchanges. Understanding this form is crucial for accurately filing your taxes, particularly if you invest or engage in bartering.

CP89Q Notice

The CP89Q Notice is issued by the IRS when adjustments occur in a taxpayer’s account, often following discrepancies or errors in filed returns. It is crucial to understand these notices, as they affect account balances and may require timely taxpayer action.

Statewide Affordable Workforce Renewable Credit

The Statewide Affordable Workforce Renewable Credit is a tax incentive designed to support affordable housing for workforce communities, encouraging sustainable development.