Understanding IRS Notices and Letters - John R. Dundon II, Enrolled Agent
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Understanding IRS Notices and Letters

Business Entity Selection and the Tax Consequences of Converting

Understanding IRS Notices and Letters

Look on the IRS notice or letter you received in the upper right hand corner for an alpha numeric sequence.  The corresponding IRS explanations below to their Notices and letters are sub categorized as follows:

1. Redesigned Notices

2. Other Notices

3. Individual Filer

4. Business Filer

Redesigned Notices

Notice Number Description Topic
CP01H You received a CP 01H notice because we were unable to process your tax return. The IRS has locked your account because the Social Security Administration informed us that the Social Security number (SSN) of the primary or secondary taxpayer on the return belongs to someone who was deceased prior to the current tax year (before January 1, 2010 for a 2010 tax return).
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
CP03C You received a tax credit (called the First-Time Homebuyer Credit) for a house you purchased. You may need to file a form to report a change in ownership to the house you purchased.
CP04 Our records show that you or your spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. As a result, you may be eligible for tax deferment.
CP08 You may qualify for the Additional Child Tax Credit and be entitled to some additional money. Additional Child Tax Credit
CP10 We made a change(s) to your return because we believe there’s a miscalculation. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year. Change To Your Estimated Tax Credit Amount
CP10A We made a change(s) to your return because we believe there’s a miscalculation involving your Earned Income Credit. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year. Change To Your Estimated Tax Credit Amount
CP11 We made changes to your return because we believe there’s a miscalculation. You owe money on your taxes as a result of these changes. Balance Due
CP11A We made changes to your return because we believe there’s a miscalculation involving your Earned Income Credit. You owe money on your taxes as a result of these changes. Balance Due
CP11M We made changes to your return involving the Making Work Pay and Government Retiree Credit. You owe money on your taxes as a result of these changes. Balance Due
CP12 We made changes to correct a miscalculation on your return.
CP12A We made changes to correct the Earned Income Credit (EIC) claimed on your tax return.
CP12E We made changes to correct a miscalculation on your return.
CP12M We made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.
CP12R We made changes to the computation of the Rebate Recovery Credit on your return.
CP13 We made changes to your return because we believe there’s a miscalculation. You’re not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.
CP13A We made changes to your return because we found an error involving your Earned Income Credit. You’re not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.
CP13M We made changes to your return involving the Making Work Pay credit or the Government Retiree Credit. You’re not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.
CP13R We made changes to your return involving the Recovery Rebate Credit. You’re not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.
CP14 We sent you this notice because you owe money on unpaid taxes.
CP14I You owe taxes and penalties because you didn’t take out the minimum amount you had to from your traditional individual retirement arrangement (IRA). Or, you put into a tax-sheltered account more than you can legally.
CP16 We sent you this notice to tell you about changes we made to your return that affect your refund. We made these changes because we believe there was a miscalculation. Our records show you owe other tax debts and we applied all or part of your refund to them.
CP21A We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s). Balance Due
CP21B We made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice. Refund
CP21C We made the change(s) you requested to your tax return for the tax year specified on the notice. You’re not due a refund nor do you owe any additional amount. Your account balance for this tax form and tax year is zero. Even Balance
CP21E As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. Balance Due
CP21I We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes. Balance Due
CP22A We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s). Balance Due
CP22E As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. Balance Due
CP22I We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes. Balance Due
CP23 We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a balance due because of these changes.
CP24 We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a potential overpayment credit because of these changes.
CP24E We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a potential overpayment credit because of these changes.
CP25 We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You’re not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.
CP31 Your refund check was returned to us, so you need to update your address. Refund
CP39 We used a refund from your spouse or former spouse to pay your past due tax debt. You may still owe money.
CP42 The amount of your refund has changed because we used it to pay your spouse’s past due tax debt.
CP45 We were unable to apply your overpayment to your estimated tax as you requested. Overpayment
CP49 We sent you this notice to tell you we used all or part of your refund to pay a tax debt. Overpayment
CP53 We can’t provide your refund through direct deposit, so we’re sending you a refund check by mail. Direct Deposits
CP59 We sent you this notice because we have no record that you filed your prior personal tax return or returns.
CP71 You received this notice to remind you of the amount you owe in tax, penalty and interest.
CP71A You received this notice to remind you of the amount you owe in tax, penalty and interest.
CP71C You received this notice to remind you of the amount you owe in tax, penalty and interest.
CP71D You received this notice to remind you of the amount you owe in tax, penalty and interest.
CP90C We levied you for unpaid taxes. You have the right to a Collection Due Process hearing.
CP120 You need to send us documentation of your tax-exempt status. Tax Exemptions
CP120A Your organization’s tax-exempt status has been revoked for failure to file a Form 990 series return for three consecutive years. In addition, you are no longer eligible to sponsor a tax-sheltered annuity plan (Internal Revenue Code section 403(b) retirement plan).
CP130 Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax. Filing Requirements
CP152 We have received your return. Confirmation of Return Receipt
CP153 We can’t provide you with your refund through a direct deposit, so we’re sending you a refund check/credit payment by mail. Refund
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
CP231 Your refund or credit payment was returned to us and we need you to update your current address. Address Update Needed
CP259 We’ve sent you this notice because our records indicate you didn’t file the required business tax return identified in the notice.
CP259A We sent you this notice because our records indicate you did not file a required Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP259B We sent you this notice because our records indicate you didn’t file a required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259C We sent you this notice because our records indicate you are presumed to be a private foundation and you didn’t file a required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259D We sent you this notice because our records indicate you did not file a required Form 990-T, Exempt Organization Business Income Tax Return.
CP259E We sent you this notice because our records indicate you did not file a required Form 990-N, e-Postcard.
CP259F We’re sending you this notice because our records indicate you did not file a required Form 5227, Split-Interest Trust information Return.
CP259G We sent you this notice because our records indicate you did not file a required Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.
CP259H We sent you this notice because our records indicate you are a tax-exempt political organization and you did not file a required Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP276A We didn’t receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time. FTD Penalty
CP276B We didn’t receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time. FTD Penalty
CP297C We levied you for unpaid taxes. You have the right to a Collection Due Process hearing.
CP501 You have a balance due (money you owe the IRS) on one of your tax accounts.
CP503 We have not heard from you and you still have an unpaid balance on one of your tax accounts.
CP504 You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe.
CP504B You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) certain property or rights to property and apply it to pay the amount you owe.
CP521 This notice is to remind you that you have an installment agreement payment due. Please send your payment immediately.
CP523 This notice informs you of our intent to terminate your installment agreement and seize (levy) your assets. You have defaulted on your agreement.
CP565 We gave you an Individual Taxpayer Identification Number (ITIN).
CP565 (SP) Nosotros le asignamos un Número de Identificación Personal del Contribuyente (ITIN, por sus siglas en inglés).
CP566 We need more information to process your application for an Individual Taxpayer Identification Number (ITIN). You may have sent us an incomplete form. You may have sent us the wrong documents.
CP566 (SP) Necesitamos más información para poder tramitar su solicitud para un Número de Identificación Personal del Contribuyente (ITIN, por sus siglas en inglés). Usted quizá nos envió un formulario incompleto. O, quizá nos envió los documentos incorrectos.
CP567 We rejected your application for an Individual Taxpayer Identification Number (ITIN). You may not be eligible for an ITIN. Your documents may be invalid. We may not have received a reply when we asked for more information.
CP567 (SP) Hemos rechazado su solicitud para un Número de Identificación Personal de Contribuyente (ITIN, por sus siglas en inglés). Es posible que no reúna los requisitos para un ITIN o que sus documentos no sean válidos. O es posible que no hayamos recibido una contestación de su parte cuando solicitamos más información.
CP601 Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas.
CP603 No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas.
CP604 Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda.
CP604B Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda.
CP621 Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente.
CP623 Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo.
CP711 Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones.
CP712 Hemos realizado cambios para corregir un error de cálculo en su planilla.
CP713 Hemos realizado cambios para corregir un error de cálculo en su planilla. No se le debe un reembolso y no adeuda una cantidad de dinero adicional a causa de estos cambios. El saldo de su cuenta es cero.
CP714 Le enviamos este aviso porque usted adeuda contribuciones pendientes de pago.
CP721 Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP722 Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP749 Le enviamos este aviso para informarle que hemos utilizado todo o parte de su reintegro para pagar una deuda contributiva.
CP759 Le enviamos este aviso porque no tenemos registro que indique que usted radicó su planilla o planillas de contribuciones personales para uno o varios años anteriores.
CP771 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP772 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP773 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP774 Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP959 Usted no radicó su planilla de contribución de negocios identificada en este aviso.
CP2005 We accepted the information you sent us. We’re not going to change your tax return. We’ve closed our review of it.
CP2006 We received your information. We’ll look at it and let you know what we’re going to do.
CP2057 You need to file an amended return. We’ve received information not reported on your tax return.
CP2501 You need to contact us. We’ve received information not reported on your tax return.

Other Notices and Letters

Notice or Letter Number
Title

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 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 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.

Individual Filer Notices

CP 09 – Earned Income Credit You May Be Entitled To From IRS Informs the recipient that, based on information reported on their tax return, they may qualify to take the Earned Income Credit.

CP 32A – We Want to Send You a New Refund Check Explains why we are sending a new refund check, what needs to be done before we can send it, and what we’ll do after the recipient replies to us.

CP 54B – Problem With Name and Identifying NumberInforms the recipient that the name and identifying number used on their tax return don’t match information we 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.

CP 54E – Problem With Name and Identifying Number Informs the recipient that the name and identifying number used on their estimated tax payment don’t match information we 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.

CP 54G – Problem With Name and Identifying Number Informs the recipient that the name and identifying number used on their tax return don’t match information we 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.

CP 54Q – Problem With Name and Identifying Number Reminds the recipient that we’re holding their refund because the name and identifying number used on their tax return don’t match the information given to us 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.

CP 57 – Notice of Insufficient Funds Informs the recipient that we are charging a penalty for insufficient funds.

CP 60 – Notice of Credit Reversal Informs the recipient that we’ve transferred a credit from their account leaving a balance due.

CP 75 – EIC Portion of Refund Delayed Informs the recipient that we’re delaying the EIC portion of their refund because we may examine parts of their tax return. The notice explains what areas we may examine and what steps we’ll take next.

CP 75A – EIC Portion of Refund Delayed Informs the recipient that we’re delaying the EIC portion of their refund because we may examine the Form 8862, Information to Claim Earned Income Credit After Disallowance, filed with their tax return. The notice explains what steps we’ll take next.

CP 79 – Earned Income Credit Eligibility Requirement Informs the recipient that they may need to complete an additional form to claim the credit if their 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 they are 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 we’re holding their refund until they file their delinquent return or provide an acceptable explanation for not filing it.

CP 90 – Final Notice of Intent to Levy and Notice of Your Right to a Hearing Informs the recipient that they still have a balance due on their account and that we intend to levy on certain assets unless they take appropriate action within 30 days.

CP 91 – Final Notice Before Levy on Social Security Benefits Informs the recipient that they still have a balance due on their account and that we intend to levy on their Social Security benefits unless they take appropriate action within 30 days.

CP 2000 – We Are Proposing Changes to Your Tax Return Informs the recipient that we’re proposing changes to their tax return based on different information reported to us by their employers, banks, and other payers. The CP 2000 provides detailed information about the differences, the changes we propose, and what to do if they agree or disagree with the proposal.

Business Filer Notices

CP 101 – Math Error, Balance Due on Form 940 Informs the recipient of one or more changes made to their Form 940 or 940-EZ return during processing. The changes resulted in a balance due on the account.

CP 102 – Math Error, Balance Due on Form 941, 941SS, 943, or 945 Informs the recipient of one or more changes made to their Form 941, 941SS, 943, or 945 return during processing. The changes resulted in a balance due on the account.

CP 108 – Problem With Your Federal Tax Deposit Informs the recipient we couldn’t determine the tax type or tax period for which a federal tax deposit was intended and explains how we applied the payment.

CP 111 – Math Error, Overpayment on Form 940 Informs the recipient of one or more changes made to their Form 940 or 940-EZ tax return during processing. The changes resulted in an overpayment.

CP 112 – Math Error, Overpayment on Form 941, 941SS, 943, or 945 Informs the recipient of one or more changes made to their Form 941, 941SS, 943, or 945 tax return during processing. The changes resulted in an overpayment.

CP 138 – Overpayment Applied to Other Federal Taxes Informs the recipient that we applied all or part of their overpayment to other taxes they owe.

CP 145 – Application of Overpayment Reduced Informs the recipient that we weren’t able to fully honor their request to apply a portion of their overpayment to the subsequent tax period, explains why, and shows the amount, if any, we did apply.

CP 160 – Reminder of Balance Due Informs the recipient of a balance that is still due on their account.

CP 161 – Balance Due – Request for Payment or Notice of Unpaid Balance Informs the recipient that there is an unpaid balance due on their account.

CP 165 – Penalty for Dishonored Check (Federal Tax Deposit) Informs the recipient that a check they sent as payment for their federal tax deposit was returned unpaid by their bank.

CP 207 – Proposed FTD Penalty – Request for Correct Information Asks the recipient to send us a completed Record of Federal Tax Liability (ROFTL).

CP 209 – EIN Assigned in Error Informs the recipient that we erroneously assigned them more than one EIN.

CP 235 – Federal Tax Deposit Penalty Waived Due to Change in Deposit Requirements Informs the recipient that we’re waiving their FTD penalty because they meet the criteria for penalty relief.

CP 236 – Reminder of Your Semi-Weekly Deposit Requirements Reminds the recipient that they’re subject to semi-weekly deposits.

CP 238 – You Made One or More Late Federal Tax Deposits But We Didn’t Charge You a Penalty Informs the recipient that they made one or more late federal tax deposits and provides guidance on these deposits and how to make them.

CP 260 – Credit Adjustment Informs the recipient that we removed one or more credits that had been erroneously applied to their account and that the account now has a balance due.

CP 261 – Notice of Acceptance as an S-Corporation Informs the recipient that we’ve approved their election to be treated as an S-Corporation and to explain their obligations.

CP 267 – Account Overpaid – Possibly Misapplied Payments Informs the recipient that they have more credit available on their account than they claimed on their tax return.

CP 268 – Correction and Overpayment Notice Informs the recipient of one or more changes made to their return during processing and of a discrepancy in the total credits claimed on their return and the total credits available on their account.

CP 297 – Notice of Intent to Levy and Notice of Your Right to a Hearing Informs the recipient of our intent to levy and of their right to receive appeals consideration.

CP 297A – Notice of Levy and Notice of Your Right to a Hearing Informs the recipient of our intent to levy and of their right to receive appeals consideration.

CP 298 – Final Notice Before Levy on Social Security Benefits Informs the recipient of our intent to levy on their social security benefits.



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