A Quick Guide to the IRS notice numbers.
If you have received a notice or a letter from the IRS, you most likely have also spotted a number for the correspondence. If you guessed that this number means something, you are absolutely correct. The IRS uses standardized text to address specific issues and numbers most of their communications. A number on your IRS notice indicates the reason for the correspondence, shows the procedural status of the matter, and directs you to the next steps required.
While some of the IRS’ notices do not require you to do anything, others set specific response guidelines and call for urgent actions on your part. A notice from the IRS’ should rarely be ignored. Missing a deadline or failing to complete a certain procedure, may deprive you of the resolution remedies and cause an immediate assesment of taxes and penalties.
The following are the explanations of the most common IRS notice numbers. If the number of the notice you received is not included in this short list, please do not hesitate to contact San Diego Tax Law Group for a cost free explanation of the number of your correspondence.
CP01: The IRS informs you they have verified your claim of identity theft. The IRS placed an identity theft indicator on your account.
CP01H: The Social Security Number you provided on your tax return belongs to someone who was deceased prior to the current tax year. The IRS was unable to process your tax return and placed a lock on your account. If the information is incorrect, you have to contact the Social Security Administration to address and adjust the mistake.
CP03C: This notice indicates that you need to file a form to report the change in ownership of the home for which you received the First-Time Homebuyer’s credit.
CP04: The IRS has records that you or your spouse served in a combat zone and may be eligible for a tax deferment. The notice will also explain why the IRS is asking you to send in documentation.
CP05: The IRS is reviewing your tax return for accuracy. If you have not received your refund or heard from the IRS within 45 days of receiving this notice, you will need to contact the IRS to address the issue.
CP05A: The IRS is examining your tax return and requests you to provide documentation of your income, the withholding reported on your income and social security benefits, the tax credits you claimed, household help you claimed, and/or your business income.
CP07: The IRS is holding your income tax refund until a more thorough review of the benefits claimed is completed. If the IRS finds no issues, you should receive your refund within 6-12 weeks, as long as you do not owe other taxes or have any other delinquent debts.
CP08: The IRS discovered that you may qualify for the Additional Child Tax Credit. If you have a qualifying child, complete and submit the Additional Child Tax Credit Worksheet and Form 1040 Schedule 8812.
CP09: The IRS records show you may be eligible for the Earned Income Credit but did not claim it on your return. If you do, sign and date the worksheet, and send it to the IRS.
CP10: The IRS made changes to your return due to a miscalculation. The notice will list what the problems were and suggest the next steps.
CP10A: The IRS is notifying you of changes made to your tax return because of a miscalculation regarding Earned Income Tax Credit.
CP11: The IRS has found a miscalculation on your tax return and you owe money as a result. If you disagree with the proposed changes, contact the IRS within 60 days of the notice.
CP12: The IRS made changes to correct a miscalculation on your tax return. If you agree with the changes the IRS made to your return, you do not need to do anything and your return should arrive within 4-6 weeks. If you do not agree, contact the IRS to review your account.
CP13: The IRS found a miscalculation on your tax return and your account balance is zero. You do not owe money and you don’t get a refund.
CP14: You owe taxes. The notice will explain how much you owe and how to pay it. You must pay the amount listed on this notice by the date listed, unless you are unable to pay in which case you may be able to arrange a payment plan.
CP14I: This notice involves an issue the IRS found with your IRA. Usually, it is issued when a person owes taxes and penalties because they did not take out the minimum required distribution or had larger than allowable contributions.
CP15B: This notice states that the IRS is charging a Trust Fund Recovery Penalty for not paying employment or excise taxes. The notice will also detail the payment due, the due date, and the options to make the payment.
CP16: The IRS has amended your return because of a miscalculation and is notifying you of these changes. Read this notice carefully as it explains the changes made to your return, and if you disagree with the changes the IRS has made contact them within 60 days of the date listed on your notice.
CP18: The IRS believes you have wrongly claimed one or more deductions or credits on your tax return. You do not have to do anything if you receive this notice, they will examine your return and contact you in the event that they need documentation.
CP19: The IRS believes you incorrectly claimed one or more deductions or credits and you have additional tax liability. You must complete and send back the response form.
CP20: The IRS believes you incorrectly claimed one or more deductions or credits, and your refund is less than expected because of this.
CP21A: The IRS made the changes you requested for the tax year on the notice, and you owe additional taxes as a result. You can agree and mail the payment indicated on the notice. If you disagree, you will have to contact the IRS to address it.
CP21B: The IRS has made the changes you requested for the tax year on the notice, and you should be receiving the additional refund within the next couple of weeks.
CP21C: The IRS has made the changes you requested for the tax year on the notice, and your account balance is zero.
CP21E: As a result of an audit, the IRS made changes to your tax return. You have to contact the IRS if you disagree with the changes made.
CP22A: The IRS has made changes you requested to your tax return for the tax year listed on the notice, and you owe money as a result.
CP23: The IRS found a miscalculation between the amount of estimated tax payments on your tax return and the amount posted to your account, and you have a balance due. Read this carefully and check the list of payments the IRS applied to your account to ensure all the payments you made were applied. If you disagree with the changes, contact the IRS at the toll-free number listed on your notice.
CP24: The IRS found a miscalculation between the amount of estimated tax payments on your tax return and the amount posted to your account, and you have a potential overpayment as a result.
CP27: The IRS believes you may be entitled to the Earned Income Credit but you did not claim it on your return.
CP30: The IRS charged you a penalty for not pre-paying enough of your taxes, either by having taxes withheld from your income, or by making timely estimated tax payments.
CP30A: The IRS has adjusted or removed completely the penalty for underpayment of your estimated tax reported on your tax return.
CP31: The IRS is notifying you that your refund check was returned to them because of an incorrect address. The easiest way to update your address is online on the IRS web site.
CP42: This letter notifies you that the IRS changed your tax refund amount because part of your refund was applied to your spouse’s past debts. Your notice will explain how the refund was allocated. You will have to contact the IRS if you disagree with the changes.
CP45: If you have tried to apply an overpayment to your estimated tax, but the IRS was unable to apply the amount requested.
CP49: The IRS used your whole tax refund to pay a tax debt.
CP53: The IRS was unable to provide your refund through direct deposit, so they have sent you a refund check by mail.
CP53A: The IRS attempted to direct deposit your refund, but your bank could not process it. They are researching the problem and your refund will be reissued in 8-10 weeks. If you do not receive your refund check or a follow-up letter within 10 weeks, contact the IRS.
CP54B: This notifies you that the tax return you submitted shows a different name or ID number from the information the IRS has on file for your account.
CP59: The IRS is notifying you that they have no record of you filing your prior personal tax return or returns. You must file your personal tax return immediately or explain to the IRS why you do not need to file.
CP57: The IRS attempted to withdraw the agreed upon installment amount from your bank account, but were unable to because of insufficient funds. You are being assessed a penalty as a result.
CP63: The IRS is holding your refund because you have not filed one or more tax returns and they believe you still owe taxes. Please file your personal tax returns and provide an explanation.
CP71: A reminder of taxes, penalties, and interest owed.
CP72: The IRS believes you may have claimed a frivolous position on your tax return. A frivolous return is identified when information on the return has no legal basis.
CP74: This notice informs you that you are re-certified for the Earned Income Tax Credit. Your EIC refund will arrive within 6 weeks as long as you don’t have a tax debt.
CP75: The IRS is auditing your tax return and requires documentation to verify the Earned Income Credit claimed.
CP75C: You have a prior ban from claiming the Earned Income Credit and the IRS has disallowed it for the current year.
CP75D: The IRS is auditing your tax return and needs documentation to verify the income and withholding reported on your tax return.
CP81: The IRS has not received your tax return for the year listed, and the statute of limitations to claim a refund is going to expire. If you fail to file your tax return or contact the IRS, you will lose the refund.
CP88: The IRS is holding your refund because you have not filed one or more tax returns and the IRS believes you owe taxes as a result.
CP90: The IRS intends to levy certain assets. They have previously sent a notice regarding the issue with your account, but your balance is still unpaid.
CP90C: The IRS has placed a levy against you. You have the right to a Collection Due Process hearing. Your notice explains the IRS’s actions.
CP91: The IRS intends to levy your Social Security benefits. Your balance is still unpaid, and they intend to take 15% of your Social Security benefits as payment.
CP108: You made a payment to the IRS, and the IRS is unable to determine the correct form or year to apply the payment to. If the payment was applied correctly, there is nothing you need to do. Otherwise, contact the IRS and direct them where the payment should be applied.
CP112: The IRS has amended your return because of a miscalculation and you are due a refund as a result.
CP120A: Due to a failure to file a form 990 series return for three consecutive years, your organization’s tax-exempt status has been revoked. Also, you are no longer eligible to sponsor a 403(b) retirement plan.
CP130: Your tax return filing requirements may have changed. You may no longer need to pay the alternative minimum tax.
CP141C: The IRS has missing or incomplete information on your return and your return is late. You must send the incomplete/missing information including the voucher at the end of your notice as soon as possible to avoid interest charges.
CP141L: You did not file your return by the due date. Please send the IRS the amount due by the date on the notice to avoid any interest charges. If you disagree with the IRS, send them a written explanation outlining the circumstances.
CP160: This is a reminder of the amount of money you owe in tax, penalty, and interest. If you are unable to pay the amount in full it is imperative to set up a payment plan as soon as possible to avoid the assessment of penalties.
CP161: This notice indicates that you have an unpaid tax obligation. It will also include the payments already made. Double check the list of payments to make sure all of the payments have been received. If you cannot pay the amount in full, you can make payment arrangements.
CP163: This is an annual notice to the taxpayers in the “currently not collectible” (CNC) status. It serves as a reminder of the tax, penalties, and interest owed.
CP166: The IRS is unable to process your monthly payment due to insufficient funds in your bank account.
CP 180/CP 181: Your tax return is missing a schedule or form. You should read the notice carefully to determine the required schedule or form needed to complete your return. If you don’t respond by the due date of the notice, your tax and/or credits may be adjusted which may result in a balance due.
CP210/CP220: The IRS has made changes to your tax return for the year listed on the notice. The notice will explain the changes made to your account.
CP 231: This notice means that your refund or credit payment was returned to the IRS and you need to update your current address.
CP 254: If you receive this notice it means although your organization submitted a paper return for the specific tax period, your filing requirements remain unsatisfied because you are required to file electronically. If you fail to do so, you may be subject to a failure to file penalty.
CP 255: The IRS’ records show that you are terminating your private foundation status, and the IRS needs additional information from you to finalize the termination.
CP 259: The IRS’ records indicate you did not file a required business tax return. You should address this issue and file the required return as soon as possible.
CP261: The IRS has approved your Form 2553, Election by a Small Business Corporation. Keep this approval letter in your permanent records, and file Form 1120S reporting income/losses, including a Schedule K-1 for all shareholders.
CP268: The IRS has amended your return because of a miscalculation, and you have a potential overpayment credit. Please read your notice carefully as it will explain any changes made by the IRS.
CP279: The IRS has accepted the parent corporation of a Qualified Subchapter S Subsidiary from Form 8869, Qualified Subchapter S Subsidiary Election. You do not need to take any further action, just retain this notice for your records.
CP279A: The IRS has accepted the parent corporation of a Qualified Subchapter S Subsidiary. You do not need to take any further action, but be sure to retain this notice for your records.
CP282: If your business has foreign partners, the partnership or a withholding agent for the partnership may need to pay a withholding tax on the Effectively Connected Taxable Income (ECTI).
CP283C: The IRS has charged you a penalty for filing a late or incomplete Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits.
CP297: The IRS’s intends to levy certain assets, and informs you of your right to a hearing.
CP297A: The IRS has issued a levy. You have a right to a hearing.
CP297C: The IRS has levied you for unpaid taxes. You have a right to a Collection Due Process hearing.
CP298: You have an unpaid tax obligation, and the IRS intends to levy your social security benefits if they are not paid.
CP501: You have a balance due on one of your tax accounts. You must make your payments by the due date, or set up a payment plan if you cannot pay in full.
CP504: You have an unpaid amount due, and if it is not paid immediately, the IRS will levy your state income tax refund.
CP504B: You have an unpaid tax obligation, and if it is not paid by the date on the notice, the IRS will levy certain property or rights to property.
CP515I: This notice is a reminder that the IRS still has no record that you filed your prior tax return or returns. Please file your taxes immediately or explain to the IRS why you do not need to file.
CP516: see CP515I.
CP518I/CP518: It is the final reminder that the IRS has no record of your previous tax returns. Please file your taxes immediately or explain to the IRS why you do not need to file.
CP521: This is a reminder that you have an installment agreement with the IRS and there is a payment due. Make your payment by the due date.
CP523: The IRS’s intends to terminate your payment plan and levy your assets because you have defaulted on your payment plan. If the installment agreement is terminated, it can only be reinstated after you pay a fee.
CP565: This notice informs you the IRS has issued you an Individual Taxpayer Identification Number (ITIN). You can use ITIN to file a federal income tax return or other tax-reporting document.
CP566: The IRS needs more information to process your application for an Individual Taxpayer Identification Number (ITIN).
CP567: The IRS has rejected your application for an Individual Taxpayer Identification Number (ITIN).
CP2000: The IRS’ records for your income and/or payment information do not match the information on your tax return. This could cause an increase or decrease in your tax. The notice will explain what information the IRS has and how it may affect your return.
CP2005: The IRS accepted the information you sent them and they are not going to change your tax return. No further actions are necessary.
CP2006: The IRS has received your information and will contact you with their decision after review.
CP2030: The IRS is proposing changes to your Corporate Income Tax Return. If you cannot make the payment in full, you may be able to set up a payment plan. If you disagree, return the response page provided with a signed statement explaining each discrepancy.
CP2057: The IRS has received additional information not reported on your tax return. You must file an amendment.
CP2566: You did not file your tax return, so the IRS has calculated your tax, penalties, and interest based on wages and other income reported to them by employers, financial institutions, and others. You must file your return immediately or accept the IRS’s proposed changes by signing the enclosed Response Form.
CP2566R: The IRS has already sent you a CP63 notice stating you they are holding your refund until the not filed tax returns are received. Because you did not reply, the IRS has calculated your tax, penalties, and interest based on information reported to by the employers and other institutions.
CP3219A: The IRS’ information is different from your tax return which may result in an increase or decrease in your tax. The notice will explain how the amounts were calculated and how you can challenge it in U.S Tax Court. If you agree with the changes, sign and return the enclosed Form 5564, Notice of Deficiency. If you disagree, mail the information including any supporting documents to the address shown on the notice.
CP3219B: This is a Statutory Notice of Deficiency and informs of the IRS’ intent to assess. If you agree with the changes, complete and send in Form 4089, Notice of Deficiency – Waiver. If you do not agree, file a petition with the Tax Court within 90 days from the date on the notice.
If you need assistance with interpreting the IRS’ notice and determining the next strategic steps, please contact San Diego Tax Law Group today.