Glossary

A CP75A Notice is a letter from the IRS requesting more information to verify the tax credits or deductions you claimed on your tax return. It means the IRS needs more proof before processing your refund.

A CP80 notice is an informational notice from the IRS regarding a change to your tax account, often related to payments or credits. It's not usually a demand for payment, but it is important to understand.

A CP90C notice is a critical notice from the IRS indicating a final intent to levy or seize your assets to satisfy unpaid taxes. It's essential to understand this notice and respond promptly.

The Statute of Limitations on IRS Collections sets a time limit on how long the IRS has to collect unpaid taxes. This time limit can impact your tax obligations.

Tax evasion is the illegal act of not paying taxes you owe. It’s a serious offense with potentially severe consequences.

A tax offset happens when the government uses a tax refund to pay off certain debts you owe. It's an important concept to understand to avoid surprises when you file your taxes.

A nonrefundable tax credit can reduce your tax liability, but unlike a refundable credit, you won't get any of it back as a refund if it exceeds what you owe. It’s an important tool for lowering your overall tax burden.

A refundable tax credit is a special type of tax break that can give you money back, even if it reduces your tax bill to zero. It's a helpful way the government can give financial assistance to taxpayers.

The self-employment tax deduction allows self-employed individuals to deduct half of their self-employment tax, reducing their overall tax burden. This deduction helps level the playing field with traditionally employed taxpayers who don't pay the full self-employment tax.

A Statutory Notice of Deficiency, often called a "90-day letter," is a formal IRS notice that proposes changes to your tax return, meaning they believe you owe more taxes. This notice is a key step in the tax dispute process.