Glossary

CP90C Notice

The CP90C notice is sent by the IRS to inform taxpayers that the agency has placed a levy on their property or assets due to unpaid taxes. The notice also informs the taxpayer of their right to request a Collection Due Process (CDP) hearing to dispute the levy.

Key points about CP90C:

It specifies the amount owed, including taxes, penalties, and interest.
It informs the taxpayer that the IRS has taken action to collect the debt through a levy on wages, bank accounts, or other assets.
The taxpayer has 30 days to request a CDP hearing to challenge the levy or negotiate alternative arrangements.

Taxpayers who receive a CP90C notice should take immediate action to resolve the tax debt and prevent further enforcement actions. They can request a hearing to dispute the levy or set up a payment plan.

Recommendation

401(k) Contribution Limit

The 401(k) contribution limit sets the maximum amount employees can contribute to their employer-sponsored retirement plan each year, offering significant tax benefits.

CP77 Notice

The CP77 notice is sent to notify taxpayers that their refund is being withheld due to unpaid tax debts or other financial obligations.

CP91 Notice

The CP91 notice warns taxpayers of a federal payment levy being placed on their account due to unpaid taxes, prompting immediate action.

CP22A Notice

The CP22A notice is sent when the IRS makes changes to a taxpayer’s return, resulting in a balance due.

IRS Form 433-F: Collection Information Statement

IRS Form 433-F is a simplified financial statement used to apply for IRS collection options like Installment Agreements and Currently Not Collectible status.

CP03 Notice

IRS CP03 is sent to notify taxpayers that their tax return is being processed, providing details on the expected refund timeline.

Failure to Deposit Penalty

The Failure to Deposit Penalty is imposed on employers who fail to make timely federal tax deposits for payroll taxes, resulting in fines and interest charges.

Substitute for Return (SFR)

An IRS Substitute for Return (SFR) is filed by the IRS on behalf of a taxpayer who fails to submit a required tax return.

Letter 4903: Request for Employment Tax Payment

IRS Letter 4903 is sent to employers with unpaid employment tax, requesting prompt payment to avoid additional charges and potential enforcement actions.

IRS Form 941: Employer’s Quarterly Federal Tax Return

IRS Form 941 is filed quarterly by employers to report wages, tax withholdings, and payments for Social Security and Medicare taxes.