Understanding Your IRS Notice or Letter

Understanding Your IRS Notice or Letter

About Your Notice If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide instructions. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office. The notice you receive covers a very specific issue about your account or tax return. Generally, the IRS will send a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information. .

IRS Notice Redesign Currently, the IRS is in the process of redesigning and revising its correspondence with taxpayers for clarity, effectiveness and efficiency. To start, the redesign affects nine notices. The new format includes a plain language explanation of the nature of the correspondence, clearly states what action the taxpayer must take and presents a clear, clean design.

Redesigned Notices Notice Number Description Topic CP02H You owe a balance due as a result of amending your tax return to show receipt of a grant received as a result of Hurricane Katrina, Rita or Wilma. Balance Due CP08 You may qualify for the Additional Child Tax Credit and be entitled to some additional money. Additional Child Tax Credit CP31 Your refund check was returned to us, so you need to update your address. Refund CP45 We were unable to apply your overpayment to your estimated tax as you requested. Overpayment CP53 We can’t provide your refund through direct deposit, so we’re sending you a refund check by mail. Direct Deposits CP120 You need to send us documentation of your tax-exempt status. Tax Exemptions CP130 Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax. Filing Requirements CP139 Your tax return filing requirements may have changed: You may no longer need to file Form 941 and Form 940. Filing Requirements CP166 We were unable to process your monthly payment because there were insufficient funds in your bank account. Payment Process CP178 Your tax return filing requirements may have changed: You may no longer owe excise tax. Filing Requirements Other Notices and Letters Notice or Letter Number Title CP 11 Changes to Tax Return, Balance Due CP 11A Changes to Tax Return and Earned Income Credit, Balance Due CP 12 Changes to Tax Return, Overpayment CP 14 Balance Due CP 21B Data Processing Adjustment Notice, Overpayment of $1 or more CP 22A Data Processing Adjustment Notice, Bal Due of $5 or more, Balance Due CP 22E Examination Adjustment Notice, Balance Due CP 23 Estimated Tax Discrepancy, Balance Due CP 49 Overpaid Tax Applied to Other Taxes You Owe CP 57 Notice of Insufficient Funds CP 88 Delinquent Return Refund Hold CP 90/CP 297 Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing CP 297A Notice of Levy and Notice of Your Right to a Hearing CP 91/CP 298 Final Notice Before Levy on Social Security Benefits CP 161 Request for Payment or Notice of Unpaid Balance, Balance Due CP 501 Reminder Notice - Balance Due CP 503 Second Request Notice - Balance Due CP 504 Final Notice - Balance Due CP 521 Installment Agreement Reminder Notice CP 523 Notice of Default on Installment Agreement CP 2000 Notice of Proposed Adjustment for Underpayment/Overpayment Letter 0484C Collection Information Statement Requested (Form 433F/433D); Inability to Pay/Transfer Letter 0549C Balance Due on Account is Paid Letter 668D(LP 68) We released the taxpayer's levy. Letter 0681C Proposal to Pay Accepted Letter 0757C Installment Privilege Terminated Letter 1058 (LT 11) Final Notice prior to levy; your right to a hearing Letter 1615 (LT 18) Mail us your overdue tax returns. Letter 1731 (LP 64) Please help us locate a taxpayer. Letter 1737 (LT 27) Please complete and site Form 433F, Collection Information Statement. Letter 1961C Installment Agreement for Direct Debit 433-G Letter 1962C Installment Agreement Reply to Taxpayer Letter 2050 (LT 16) Please call us about your overdue taxes or tax return. Letter 2257C Balance Due Total to Taxpayer Letter 2271C Installment Agreement for Direct Debit Revisions Letter 2272C Installment Agreement Cannot be Considered Letter 2273C Installment Agreement Accepted: Terms Explained Letter 2318C Installment Agreement: Payroll Deduction (F2159) Incomplete Letter 2357C Abatement of Penalties and Interest Letter 2603C Installment Agreement Accepted - Notice of Federal Tax Lien Will be Filed Letter 2604C Pre-assessed Installment Agreement Letter 2761C Request for Combat Zone Service Dates Letter 2789C Taxpayer Response to Reminder of Balance Due Letter 2822C VRU Acceptance of Proposal to Pay (30,60,90, 120 days) Letter 2823C VRU Monthly Payment Plan Confirmation Letter 2840C CC IAPND Installment Agreement Confirmation Letter 3030C Balance Due Explained:Tax/Interest Not Paid Letter 3127C Revision to Installment Agreement Letter 3217C Installment Agreement Accepted: Terms Explained Letter 3228 (LT 39) Reminder notice. Letter 4903 (LT 26) We have no record of receiving your tax returns. Letter LP 47 Address Information Request Letter LP 59 Please contact us about the taxpayer levy. Eight Things to Know If You Receive an IRS Notice or Letter Read about eight things every taxpayer should know about IRS notices. How To Identify Your Notice The notice number prints on the top of the first page of all our notices and on the lower left-hand side of the tear-off stub included with most of them. That number identifies the message we deliver in every notice. While the contents may vary somewhat, every notice with the same number has the same basic purpose. What If My Notice Isn't Listed You'll find useful information here about many of the notices we send, including the purpose of the notice, the reason we send it, and a list of enclosures we might include with it. There's also sample content for each. Since parts of our notices vary depending on account conditions, the samples may not exactly match the notices we mail. The basic message, though, will be the same. Individual Filer Notices Notices we send about Form 1040, 1040A, or 1040EZ, or any schedules, forms, or attachments included with it are Individual Filer Notice. Business Filer Notices Notices we send about business-related tax forms such as Forms 941, 1065, and 1120, are Business Filer Notices. Gustavo A. Viera, CPA CPA in Miami since 1983