The following is an attempt to explain the CP series of notifications from the IRS to taxpayers. This is not all inclusive, but focuses on notices that lead up to and include the collection process of the IRS. All of them are primarily computer generated. If you respond by telephone, you will be directed to a general line.
Forms
- Form 2848: Power of Attorney and Declaration of Representative Form
- Form 433-A: Collection information form for wage earners and self-employed individuals in proving financial hardship. Used for an Offer in Compromise when proving non-collectible status.
- Form 433-B: Collection information form for businesses
- Form 656: Offer in Compromise
- Form 9465: Installment Agreement request form
- Form 8857: Request for Innocent Spouse relief
- Form 843: Claim for refund and request for Penalty Abatement
- Form 1127-A: Extension of Time for Payment of Tax due to Undue Hardship
- Form 4852: Substitute W-2 Form to file IRS back taxes
Notices
CP 11A – The IRS made changes on you return. The IRS believes there is a miscalculation involving your Earned Income Credit. There is a balance due
CP 12 – This is when the IRS corrects an over-payment made by the taxpayer. If your agree, do nothing. This changes you refund. If you disagree, additional information will be required.
CP 13 – The IRS believes there is a miscalculation on your return. There is no refund or balance due. If you agree, do nothing. If you disagree, call.
CP 14 – The IRS is notifying you that you have unpaid balance due. You are not in Collections yet. This is the first step in that direction. If you agree, pay them. If not, call.
CP 16 – The IRS is notifying you about changes they made to your return, based on what they think is a miscalculation, that affects your refund. If you owe money from another year, they take funds and apply them to the other debt.
CP 22 series – A change has made to your return and you owe money. This can be by your request, an audit, or other source of information. If you agree, pay. If not, call.
CP 23 – The IRS is notifying you that there is a difference in the estimated tax deposits reported on your returns and what has posted to your account. This is pre-Collections, but important.
CP 24 – The IRS is notifying you that there is a difference in the estimated tax deposits reported on your returns and what has posted to your account. This is the same as CP 23, but an over-payment has posted to your account.
CP 49 – The IRS is sending you this notice to tell you that they used part or all of your refund to pay a past balance due. If you agree, do nothing. If not, call (and have your paperwork and a fax machine nearby).
CP 72 – The IRS is notifying you that you may have claimed a frivolous position that has no basis in law on your tax return. THIS IS DANGEROUS!! Beware tax scams!! Can create criminal penalties.
CP 74 – You have been re-certified for the Earned Income Tax Credit. Do not do anything more.
CP 90 – Important. This is a Notice of Intent to Levy. A levy is when the IRS takes your money. This is the beginning of the real collection process. Even the IRS suggests you might want to consider hiring a professional.
CP 92 – The IRS is notifying you they have taken your state tax refund and applied it to a past federal IRS tax liability. This can be appealed.
CP 161 – The IRS is notifying you that you have a balance due. You have 10 days before it is sent to collections. This is a pre-collections notice.
CP 171 – This is your IRS reminder notice. You still owe. You will continue to receive these if you owe money, even if you enter into an installment agreement or complete an offer in compromise.
CP 501 – The IRS is notifying you that you have a balance due and they are getting ready to file a federal tax lien, if they have not done so already. An IRS lien is not a levy, but it affects credit and liquidity of your assets.
CP 503 – This is a second reminder that you have a balance due. If you agree, pay. If not, call.
CP 504 – FINAL NOTICE OF INTENT TO LEVY. (45 days from Notice date) The IRS is notifying you that you have an unpaid balance due and that they will seize any state tax refunds and apply them to the balance due, seize property, levy wages, bank accounts, income or assets or place liens against you. This is a collections notice. The account is now in collections. Liens and levies may be forthcoming.
CP 504B – FINAL NOTICE OF INTENT TO LEVY. (45 days from the Notice date) The IRS is notifying you that you have an unpaid balance due and that they are preparing to seize property, levy wages, bank accounts, income or assets or place liens against you. This is a collections notice.
CP 521 – This is you notice that you have an installment payment due.
CP 3219A – The IRS is notifying you that it has received information that is different than what you have reported on your tax return. This may result in an increase or decrease of you tax. In this age of identity theft, this is becoming more important.
CP 2000 – This notifies you that the the income and/or payment information the IRS has does not match the information you have on your return. This can affect your tax return and your outstanding liabilities. It is usually the notice that starts the audit process. This is also referred to as a notice of under reported income.
This is not a complete list of computer generated notices intended to be mailed to taxpayers. CP 90, 503.504 and 504B are primary collection notices. For further information, please see IRS Publications 1 and 594. They are supposed to be sent to taxpayers at the start of the collection process.
800-900-4250
