If you are contacted by the IRS, they usually send you a notice to call, or pay an unpaid tax amount. Most taxpayers are confused as to what the notice is for, or what does it really mean.
This article will clarify the most common notices received by taxpayers needing back tax help.
Some of the Individual CP notices the IRS sends are:
• CP09, Earned Income Credit You May Be Entitled To From IRS: Informs the recipient that, based on information reported on the tax return, he or she may qualify to take the Earned Income Credit.
• CP10, Changes to Tax Return, Reduced Amount Applied to Next Year’s Estimated Tax:Informs the recipient of one or more changes made to his or her individual income tax return. The changes resulted in a reduced amount being applied to the following year’s estimated tax.