Glossary

Tax Transcript

A tax transcript is a summary document provided by the IRS that contains key information from a taxpayer’s filed tax return. Unlike a full copy of the return, the transcript provides a simplified version of the data, including:

Adjusted Gross Income (AGI).
Taxable income.
Tax credits and deductions.

Tax return transcripts are often required for applications for financial aid, mortgage loans, or other financial transactions where proof of income or tax history is necessary. Taxpayers can request a transcript for free from the IRS using the Get Transcript tool on the IRS website or by submitting Form 4506-T.

Recommendation

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.

Shared Responsibility Payment (SRP)

The Shared Responsibility Payment (SRP) was a penalty under the Affordable Care Act for individuals who did not have qualifying health insurance.

CP39 Notice

IRS CP39 notifies taxpayers that their current-year refund has been applied to a prior year’s unpaid tax debt.

CP14H Notice: Health Coverage Tax Credit Balance Due

IRS CP14H Notice informs taxpayers that they have a balance due related to the Health Coverage Tax Credit (HCTC) and provides steps for payment.

Statute of Limitations on IRS Collections

The statute of limitations on IRS collections is typically 10 years, after which the IRS can no longer pursue unpaid tax debt, unless certain actions extend the period.

Letter 2050: Request to Contact IRS for Unpaid Taxes

IRS Letter 2050 asks taxpayers to contact the IRS about resolving their unpaid taxes to avoid more aggressive collection actions.

CP25 Notice: Refund Adjustment Due to Estimated Tax Payments

The IRS CP25 Notice informs taxpayers that their refund has been adjusted due to incorrect estimated tax payments.

Amended Tax Return

An amended tax return is filed to correct errors or omissions on a previously submitted tax return, using IRS Form 1040-X.

IRS Letter 3172: Notice of Federal Tax Lien Filing and Your Right to a Hearing

IRS Letter 3172 is a notice that a federal tax lien has been filed against your property, giving the IRS a legal claim to your assets.

CP2005 Notice: Confirmation That No Change is Necessary

The IRS CP2005 Notice confirms that after reviewing the taxpayer’s return, no changes are required, and no further action is necessary.