Tax Relief Blog
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.
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• CP11, Changes to Tax Return, Balance Due: Informs the recipient of one or more changes made to his or her tax return during processing. The changes resulted in a balance due on the account. See “What is a math error according to the IRS?” for more information.
• CP11A, Changes to Tax Return and Earned Income Credit, Balance Due: Informs the recipient of one or more changes made to his or her tax return during processing. At least one of the changes affected the Earned Income Credit, and resulted in a balance due on the account.
• CP12, Changes to Tax Return, Overpayment: Informs the recipient of one or more changes made to his or her tax return during processing. The changes resulted in an overpayment that will be refunded within six weeks if no other taxes are owed. See “What is a math error according to the IRS?” for more information.
• CP13, Changes to Tax Return, No Refund and No Balance Due: Informs the recipient of one or more changes made to his or her tax return during processing. The changes resulted in neither a balance due nor an overpayment on the account.
• CP13A, Changes to Tax Return and Earned Income Credit, No Refund and No Balance Due: Informs the recipient of one or more changes made to his or her tax return during processing. At least one of the changes affected the Earned Income Credit. There is neither an overpayment nor a balance due on the account.
• CP14, Balance Due: Informs the recipient that there is a balance due on his or her individual tax account.
• CP16, Changes to Tax Return, Resulting Overpayment Applied to a Balance Due:Informs the recipient of one or more changes made to his or her individual income tax return. The changes resulted in an overpayment, all or part of which the IRS applied to a balance due on another tax year.
• CP23, Estimated Tax Discrepancy, Balance Due: Informs the recipient that there was a difference between the amount of Estimated Tax Payments claimed on his or her tax return and the amount posted to his or her account. This notice may also inform the recipient that the IRS made corrections to his or her tax return. The notice reflects a balance due on the account.
• CP32A, We Want to Send You a New Refund Check: Explains why the IRS is sending a new refund check, what needs to be done before the IRS can send it, and what the IRS will do after the recipient replies to the IRS.
• CP45, Reduced Amount Applied to Estimated Tax: Informs the recipient that the IRS wasn’t able to fully honor his or her request to apply a portion of his or her refund to the subsequent year’s estimated tax, explains why, and shows the amount, if any, the IRS did apply.
• CP49, Overpaid Tax Applied to Other Taxes You Owe: Informs the recipient that the IRS applied all or part of his or her refund to other taxes he or she owes, lists the amounts applied, and shows the amount, if any, to be refunded.
• CP54B and CP54G, Problem With Name and Identifying Number: Informs the recipient that the name and identifying number used on his or her tax return doesn’t match information the IRS received from the Social Security Administration, gives examples of what might cause such a mismatch, and explains the steps the recipient needs to take to resolve it.
• CP54E, Problem With Name and Identifying Number: Informs the recipient that the name and identifying number used on his or her estimated tax payment doesn’t match information the IRS received from the Social Security Administration, gives examples of what might cause such a mismatch, and explains the steps the recipient needs to take to resolve it.
• CP54Q, Problem With Name and Identifying Number: Reminds the recipient that the IRS is holding his or her refund because the name and identifying number used on his or her tax return doesn’t match the information given to the IRS by the Social Security Administration, gives examples of what might cause such a mismatch, and explains the steps the recipient needs to take to resolve it.
• CP57, Notice of Insufficient Funds: Informs the recipient that the IRS is charging a penalty for insufficient funds.
• CP60, Notice of Credit Reversal: Informs the recipient that the IRS transferred a credit from his or her account, leaving a balance due.
• CP75, EIC Portion of Refund Delayed: Informs the recipient that the IRS is delaying the EIC portion of his or her refund because the IRS may examine parts of his or her tax return. The notice explains what areas the IRS may examine and what steps the IRS will take next.
• CP75A, EIC Portion of Refund Delayed: Informs the recipient that the IRS is delaying the EIC portion of his or her refund because the IRS may examine Form 8862, Information to Claim Earned Income Credit After Disallowance, filed with his or her tax return. The notice explains what steps the IRS will take next.
• CP75B, EIC Portion of Refund Delayed: Informs the recipient that the IRS is delaying the EIC portion of his or her refund because the IRS hasn’t received Form 8836, Qualifying Children Residency Statement, or is still reviewing it. The notice asks the recipient to send a copy of Form 8836 if he or she hasn’t already and explains what steps the IRS will take next.
• CP 79, Earned Income Credit Eligibility Requirement: Informs the recipient that he or she may need to complete an additional form to claim the credit if his or her Earned Income Credit (EIC) was disallowed or reduced by the IRS for any year after 1996.
• CP 79A, Earned Income Credit Two Year Ban: Informs the recipient that he or she is banned from claiming the Earned Income Credit (EIC) for two years, and must complete an additional form to claim the EIC in the first year after the ban has been lifted.
• CP 88, Delinquent Return Refund Hold: Informs the recipient that the IRS is holding his or her refund until he or she files a delinquent return or provide an acceptable explanation for not filing it.
• CP90, Final Notice of Intent to Levy and Notice of Your Right to a Hearing: Informs the recipient that he or she still has a balance due on his or her account and that the IRS intends to levy on certain assets unless the recipient takes appropriate action within 30 days.
• CP91, Final Notice Before Levy on Social Security Benefits: Informs the recipient that he or she still has a balance due on his or her account and that the IRS intends to levy on the recipient’s Social Security benefits unless he or she takes appropriate action within 30 days.
• CP501, Reminder – Balance Due: Informs the recipient that he or she still has a balance due on his or her account and that the IRS can file a Federal Tax Lien if the recipient doesn’t pay the entire amount within 10 days.
• CP523, Notice of Intent to Levy – You defaulted on Your Installment Agreement: Informs the recipient that he or she defaulted on his or her installment agreement, provides the reason for the default, and describes the actions the IRS intends to take and what the recipient can do to prevent the IRS from taking those actions.
• CP2000, We Are Proposing Changes to Your Tax Return: Informs the recipient that the IRS is proposing changes to his or her tax return based on different information reported to the IRS by employers, banks, and other payers. The CP 2000 provides detailed information about the differences, the changes the IRS proposes, and what to do if the recipient agrees or disagrees with the proposal.
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Mike Habib EA is an accredited member of the BBB better business bureau with an A+ rating. Mike is also an Endorsed Local Provider – ELP by Former Dave Ramsey ELP 2012-2019, the TV and financial expert. Mike is an active member of CSEA – California Society of Enrolled Agents, and NAEA – National Association of Enrolled Agents.
About Mike Habib, EA NTPI Fellow®:
Mike Habib, EA is an IRS licensed Enrolled Agent who owns and operates a specialized tax services boutique firm serving clients in various metro areas such as Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery,
