To locate the TaxAct Terms of Service, see https://www.taxact.com/terms-of-service. To locate the TaxAct Privacy Notice, see https://www.taxact.com/privacy-notice. FAQ: 51919
The TaxAct website includes a Notice Review service. Notice Review can help you understand what type of IRS notice you have received and why. More importantly, it will provide information to help you understand the notice and the steps you need to take to resolve the situation with the IRS. For more information, go to […]
If you provide care to an individual who has a physical, mental, or emotional handicap, the difficulty of care payments you receive are generally excluded from income. Review the information below to determine how to report these payments, if necessary, on your tax return. See the IRS Certain Medicaid Waiver Payments May Be Excludable From […]
If you received IRS Letter 12C, you will need to provide the IRS with the requested documentation so they can finish processing your return. Letter 12C typically requests the following items: a copy of the Form 1095-A that you received showing your Marketplace health insurance coverage, the completed Form 8962 that reconciles the advanced Premium […]
IRS General Audit Categories IRS Notices Letter (or Correspondence) Audit Office (or Desk) Audit Field Audit Taxpayer Advocate State Notices. IRS Notices and Audits Information: For information on a specific IRS notice, review the Notice Review – IRS Notice Listing FAQ. To contact TaxAct for assistance with your IRS or state notice, see the Received […]
Form 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains is a form received after the end of the year like any other form (i.e. W-2, 1099-INT, etc.). If you received a Form 2439 with an amount in Box 2 Tax paid by the RIC or REIT on box 1a gains, you would report the […]
Our servers stamp your electronically filed (e-filed) return with your local time. Our records (and emails you receive from us) are stamped with our local time (Central Standard Time). You can adjust the time provided for your time zone.
According to the IRS Understanding Your 5071C Letter webpage, this letter may be sent when the IRS needs more information to verify your identity in order to process your tax return accurately. Receiving this letter DOES NOT necessarily mean your identity has been stolen, but only that the IRS needs to verify your identity prior […]
There are many reasons you could have received a notice regarding your Form 1099-MISC Miscellaneous Income. The most common reasons are listed below: The form was never entered into the TaxAct program and the income was not reported elsewhere on the return. Entry error: Example of a transposed number: The number that should have been […]
IRS Letter 525 is issued to inform the taxpayer of proposed changes stemming from an IRS examination. The letter explains the changes to the tax return and requests payment of the balance due (or outlines the amount of the adjusted refund). Sections of Letter 525 Header – This area contains the notice date, your Social […]
Per the IRS Letters and Notices Offering an Appeal Opportunity webpage: Letter 531 – Notice of Deficiency You will get this letter if you owe additional tax or other amounts for the tax year(s) listed in the letter. The letter explains how to dispute the adjustments if you do not agree. If you want to […]
If you received an IRS notice and it is indicating an Accuracy Related Penalty, this penalty is assessed when a significant amount of taxable income is omitted from the return. You will need to provide the IRS written explanation of how you acted in good faith and how the omission of the information was not […]
TaxAct supports the individual tax return on Form 1040 U.S. Individual Income Tax Return but does not support Form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. This form is a request for a determination letter from the IRS regarding a worker’s status and is completely separate from […]
There are a number of IRS letters and notices that are sent as either Examination Letters, Collection Letters, or Notices. Go to the IRS Letters and Notices Offering an Appeal Opportunity webpage for a brief summary of each of the following letters or notices: Letter 11 – Final Notice of Intent to Levy and Notice […]
This notice informs the taxpayer of a balance due because of an audit examination of their return. Sections of the Notice: Header – This area contains the Notice Number, the notice date, your Social Security Number and the IRS contact number. Explanation – The explanation portion details the IRS audit adjustments to the tax return […]
The CP 79A is sent by the IRS to notify the taxpayer that they are banned from claiming the Earned Income Tax Credit (EIC) and will need to complete Form 8862 Information To Claim Certain Credits After Disallowance to claim the EIC on a future tax return. This is generally caused by the taxpayer being […]
The CP 79 is sent by the IRS to notify the taxpayer that they will need to complete Form 8862 Information To Claim Certain Credits After Disallowance to claim the Earned Income Credit (EIC) on a future tax return. This is generally caused by the taxpayer being disallowed or receiving a reduced EIC. Form 8862 […]
If you have received this notice, it means you have failed to file a tax return. The type of return and tax period will be shown in the upper right corner as well as in the body of the notice. You received this notice because the IRS has reason to think you meet the filing […]
The CP 75 series of notices are issued to inform the taxpayer that their Earned Income Credit (EIC) portion of their refund is being delayed while the IRS is examining the return or determining their eligibility. The notice will state why the IRS is delaying the EIC portion of your refund and what information or […]
The CP 54 series of notices is issued to alert the taxpayer that: there is a problem with name and identifying number on the tax return or the estimates paid, or the IRS is holding a refund for a prior year because the name and Social Security Number (SSN) or IRS Individual Taxpayer Identification Number […]
This notice informs the taxpayer that the estimated tax payments received by the IRS and posted to their account does not match the tax payments claimed on the return, leaving a balance due. There may also be information included for any changes made to the return. The notice shows the credits the IRS has received […]
This is not a bill – the IRS has made changes you requested to your tax return and there was an overpayment based on this adjustment. You will be receiving an additional tax refund within 2-3 weeks of the notice. The notice explains the changes to the tax return. If you agree with the adjustment(s) […]
The IRS was unable to apply the taxpayer’s overpayment to the following year’s taxes as requested on the return. This could be caused by an adjustment to the filed return or the IRS record of payments made did not match the payments claimed on the return. The notice could also be generated if the IRS […]
The Office (or Desk) Audit is an in-person interview and review of the taxpayer’s records and is usually done at a local IRS office. Most audits of individual returns (except for the self-employed) are office audits because the returns are not as complex. Often these audits will only cover a few specific issues which the […]
The Field Audit is an in-person interview and review of the taxpayer’s records that is usually conducted at the taxpayer’s home, place of business, or accountant’s office. Audits of business returns, especially for self-employed individuals, are often done at the taxpayer’s place of business and are more involved than audits of individual returns. The term […]
The Letter Audit (or Correspondence Audit) is conducted entirely by mail. The IRS will send a letter asking for additional information about an item on your return, such as a deduction claimed for charitable contributions or medical expenses. This type of audit could become an office audit if the IRS is not satisfied with your […]
Below is a list of common IRS Notices. You can find your notice number on page 1 at the top right. Click a link below that matches the number on your notice to be taken to our corresponding FAQs. Most Common CP 2000 CP 12 CP 11 Letter 525 CP 12C Other Notices CP 09 […]
This notice sent from the IRS is to alert the taxpayer that they may be eligible to receive the refundable Earned Income Credit based on the data supplied on their return. The notice contains a questionnaire to complete and submit to the IRS for the Earned Income Credit claim. After completing the questionnaire, if the […]
This notice is issued to inform the taxpayer that the IRS has made changes to their return which results in an adjusted overpayment that will be refunded within 4 to 6 weeks if no other taxes or past due debts are owed. Sections of the CP 12 Header – This area contains the Notice Number, the […]
This notice informs the taxpayer that the IRS has made changes to their return based upon the information the taxpayer has provided. Due to these changes, additional taxes are now due. Sections of the Notice: Header – This area contains the Notice Number, the applicable tax year, the notice date, your Social Security Number, and […]
The IRS is contacting your because their records indicate there is an outstanding refund check issued to the taxpayer – the refund check is outdated and no longer valid. If you still have the check, destroy it and contact the IRS to receive a new refund check. If the check is lost contact the IRS […]
The IRS has adjusted your tax return and these changes affect your refund. The notice explains the changes to the tax return and the amount of the overpayment that was applied to your tax balance from prior year returns. If you agree with the adjustment, make the changes to your tax return records to reflect […]
This notice informs the taxpayer that the IRS is taking all or a portion of the overpayment (refund) from one account and applying it to an underpayment (balance due) for another account. There may be additional information on the notice regarding protection from your spouse’s debts (Injured Spouse Relief). Sections of the Notice: Header – […]
This notice is to tell you that the IRS intends to levy or legally seize property to satisfy your tax debt. You should pay the balance due or, if the full payment cannot be made at this time, contact the IRS immediately at the number listed on the notice. The notice gives you 30 days […]
The IRS issues this notice to inform the taxpayer that they intend to levy against their Social Security Benefits. The notice contains the steps necessary to be taken within 30 days to prevent the IRS from this action. The taxpayer has a balance due on their account for which they have previously received a notice. […]
The CP 161 is not a math error notice. It shows the underpaid tax according to the IRS records. CP 161 shows the tax you reported on the return, the payments the IRS applied, and the resulting underpayment the IRS has on record. This notice is a reconciliation issue and the starting point is generally […]
This is the first reminder notice that you have a balance due on a tax account. The IRS has previously sent a notice about a balance due on a tax account. This reminder notice alerts you that there is an outstanding balance and, if not paid within 10 days, the possible actions the IRS may […]
This is the final notice that you have a balance due on a tax account. The IRS has previously sent the taxpayer notices about a balance due on a tax account. This urgent notice alerts you that there is an outstanding balance and the IRS intends to levy or take your state tax refunds. Sections […]
This is a notice the taxpayer would receive if he or she has an installment agreement with the IRS for an outstanding tax balance and the IRS considers you in default on your installment agreement. Examples of default causing actions are: missing a payment, new balance due, or not filing a tax return. The notice […]
IRS Notice CP 2000 is referred to as the Notice of Proposed Adjustment for Underpayment/Overpayment and is the most common notice sent out by the IRS. The IRS compares informational returns filed by companies on Forms W-2, 1098, 1099, etc. with information as reported by the taxpayer on their return, and issues a CP 2000 […]
The IRS has adjusted your tax return which affected the amount of the refund applied to the following year’s estimated tax payments as requested on the tax return. The notice explains the changes to the tax return and the resulting adjustment to the amount applied to the estimated payments, you should adjust your tax return […]
This notice is issued to inform the taxpayer that the IRS has adjusted their tax return and there is a balance due because of the adjustment. The notice will explain the changes to the tax return and request payment of the balance due. Sections of the CP 11 Header – This area contains the Notice […]
The IRS has adjusted your tax return including the Earned Income Credit (EIC) and there is a balance due because of the adjustment. The notice explains the changes to the tax return and the EIC. If you do not agree with the change, call or write to the IRS at the phone number or address […]
The IRS has made changes to your tax return and there is nothing owed or no refund based on the adjustment. The notice explains the changes to the tax return (and/or Earned Income Credit). If you agree with the adjustment(s), make the appropriate changes to your tax return record. If you do not agree with […]
There are many reasons you could have received a notice regarding your Form(s) 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.. The most common reasons are listed below: The form was never entered into the TaxAct® program and the income was not reported elsewhere on the return. Entry error: Example […]
There are many reasons you could have received a notice regarding your Form(s) W-2 Wage and Tax Statement. The most common reasons are listed below: The form was never entered into the TaxAct® program and the income was not reported elsewhere on the return. Entry error: Example of a transposed number: The number that should […]
There are many reasons you could have received a notice regarding your Form 1099-INT Interest Income and/or Form 1099-DIV Dividends and Distributions . The most common reasons are listed below: The form was never entered into the TaxAct® program and the income was not reported elsewhere on the return. (According to the IRS instructions, the […]
If your Social Security Number is used on more than one return, TaxAct will notify you, even if you have not yet filed your return. Duplicate SSNs are usually the result of a typo or other manual mistake. If the information you have entered is correct, you may have created more than one account. Make […]
To enter or review information from Form 56 Notice Concerning Fiduciary Relationship: From within your TaxAct 1041 return, click Federal. On smaller devices, click in the upper left-hand corner, then click Federal. Click Miscellaneous Topics in the Federal Quick Q&A Topics menu to expand, then click Form 56 – Notice Concerning Fiduciary Relationship. Click Form 56 to scroll down to answer all applicable questions, then […]
