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Tax Attorney, Mary E. King
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part21-10

21.3.1 
Taxpayer Contacts Resulting From Notice Issuance

All Official Use Only content has been replaced with ≡.

21.3.1.1 
(10-01-2005)
Notice Overview

  1. This section provides guidelines for identifying and resolving inquiries concerning Computer Paragraph (CP) notices, internal
    notices and notices issued during the processing of a return. Guidelines for balance due notices and delinquent return notices
    are found in IRM 5.19.1, Liability Collection— Balance Due, and IRM 5.19.2, Liability Collection–Return Delinquency. See Document 6209, IRS Processing Codes and Information, Section 9 for a complete list of notices.

  2. Each subsection in this section presents an overview of a specific notice or letter, general procedures for working the notice,
    and a reference to the Internal Revenue Manual (IRM) for detailed procedures. If during a contact any of the following occur:

    If And Then
    1. It appears there is a hardship situation or
    2. The taxpayer insists on being referred to the Taxpayer Advocate Service (TAS) or
    3. The contact meets TAS criteria
    You cannot resolve the taxpayers issue the same day Prepare and forward Form 911, Request for Taxpayer Advocate Service Assistance and (Application for Taxpayer Assistance order), to the local Taxpayer Advocate. See the Taxpayer Advocate Service Public Site http://tasnew.web.irs.gov/index.asp?pid=2324

    Caution:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See
    guidelines in IRM 21.1.3, Operational Guidelines Overview. Also, before leaving any messages on a taxpayers answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.10, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

21.3.1.1.1 
(10-01-2009)
Erroneous Correspondence Procedures

  1. The Notice Gatekeeper Office is designated as the point-of-contact when significant volumes of erroneous notices and (or)
    letters are issued or are at risk of being issued. It is the responsibility of all IRS employees to report erroneous notices
    and letters after identifying them. Employees who identify a potentially erroneous notice or letter must discuss the correspondence
    with their lead or manager to determine whether it is truly erroneous.

  2. Examples of erroneous correspondence include notices and (or) letters with:

    • Nonsensical/garbled content (i.e., the text makes no sense or is unreadable)

    • Incorrect fill-in information (e.g., dollar amounts, math error codes, etc., that dont match what is present on the Integrated
      Data Retrieval System (IDRS))

    • Misspellings, typographical errors, or incorrect text in the body of the correspondence

    • Potential Breaches of Personally Identifiable Information (PII) caused by multiple notices and (or) letters in one envelope,
      taxpayer−TIN mismatch, misdirected faxes, etc. See IRM 10.8.1.3.1.1.2, Personally Identifiable Information (PII), for a more comprehensive definition of PII.

    Note:

    Correspondence sent to the taxpayer’s legitimate address of record is not considered to be erroneous, even if the taxpayer
    no longer resides at the address. See IRM 21.1.3.2.2(7) , Authorized and Unauthorized Disclosures.

  3. If the notice or letter is erroneous or it isnt possible to determine, report the erroneous correspondence to The Office
    of the Notice gatekeeper. Take the following actions:

    1. Complete the Erroneous Correspondence Issuance Reporting Form on the Notice Gatekeeper Web site. You can use the “Report
      Erroneous Correspondence” button on the Servicewide Notice Information Program site (SNIP) or go directly to the Erroneous
      Correspondence Issuance Reporting Form. Instructions for completing are listed on the bottom of the form. Record the Erroneous
      Correspondence report number provided by the Web site after completing the Erroneous Correspondence Issuance Reporting Form.

      Note:

      Fill in as much detail as possible including details of the error and how it was identified, but DO NOT enter on the form any personally identifiable information (PII). Notice Gatekeeper staff will review the report and contact
      you for additional information within 1 business day. Be prepared to provide the Taxpayer Identification Number(s) (TINs)
      and the notice or letter date or cycle.

    2. Request a copy of the correspondence from the taxpayer. If the taxpayer has access to a fax machine and is willing to fax
      it, ask them to fax it to you.

    3. Upon receipt of the erroneous correspondence whether by fax or by mail, fax it to The Office of the Notice Gatekeeper at ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Include on the fax cover sheet the Erroneous Correspondence Report number provided by the Web site after
      completing the Erroneous Correspondence Issuance Reporting Form in step (a) above.

      Note:

      The Office of the Notice Gatekeeper fax number is for internal use only. Do not provide the fax number to the taxpayer.

      Reminder:

      The procedures in (a) through (c) above describes the requirement for reporting disclosure incidents involving potential erroneous
      notice or letter issuance. This process is an exception to the normal Computer Security Incident Response Center (CSIRC) requirements
      for disclosure incidents involving a potential losses of PII data. The procedures in (a) through (c) above alert the Notice
      Gatekeeper who will notify CSIRC as necessary after an initial analysis of the incident.

21.3.1.2 
(10-01-2002)
What Is a Notice?

  1. A Computer Paragraph (CP) notice results from:

    • Input of notice codes

    • Computer analysis of an account on Master File (MF)

    • Posting of a transaction

  2. Internal notices/transcripts are issued to alert IRS employees of possible necessary action. Notices may:

    • Request payment

    • Give instructions

    • Inform

    • Request information

    • Propose penalties or assessments

  3. Notice (CP) numbers usually are printed in the upper right corner of a CP notice. Each notice contains taxpayers name, address,
    Taxpayer Identification Number (TIN), and a computer generated or pre-printed message.

21.3.1.2.1 
(10-01-2008)
Notice Types and Definitions

  1. Submission Processing Notices:

    • If a return is not processable due to missing information, Submission Processing sends the taxpayer a notice requesting the
      information. The Internal Revenue Restructuring and Reform Act of 1998 (RRA 98) requires the inclusion of telephone numbers
      on most notices. The phone number shown on these notices is the Toll-Free Customer Response line appropriate for the taxpayers
      Business Operating Divisions (BODs).

    • These notices are pre-printed, some have boxes checked to indicate exactly what information is needed (a single copy is sent
      to the taxpayer). A return envelope is enclosed with the notice.

    • These returns have not completed processing and Integrated Data Retrieval System (IDRS) shows a dummy module with a Letter
      12C, Individual Return Incomplete for Processing or command code ERINV shows an ERS status code indicating a Letter 12C has been sent. Encourage the taxpayer to return the
      requested information in the envelope provided along with a copy of the notice. If the taxpayer returns the notice with the
      information, his/her return is treated as filed on the original received date.

  2. Settlement Notice—Informs the taxpayer of payment and interest due, math errors, and adjustments.

  3. Math Error Notice—Informs taxpayer of a math error found during processing and identifies the line on the return where the error occurred.

  4. Balance Due Notice—Requests payment, generates if a return does not have a math error and has a balance due. This is the first notice of balance
    due.

  5. Adjustment Notice—Informs taxpayer of adjustment made to the account by examination, adjustment, or taxpayer request. Generally the fourth
    and fifth digits of the Document Locator Number (DLN) of a Data Processing (DP) adjustment are 54. The fourth and fifth digits
    of the DLN of an Examination adjustment are 47.

  6. Offset Notice—Informs taxpayer of the offset of an available overpayment to an outstanding debit balance.

  7. Information Notice—Issued to provide information internally or to taxpayer. A response is not needed.

  8. Credit Transfer Notice—Informs taxpayer of a credit transfer when the CORR–DATE filed in FRM 34 is overlaid.

  9. IDRS Notice—Issued as a subsequent balance-due or return delinquency notice.

21.3.1.3 
(10-01-2008)
Notice Resolution Actions Research

  1. The following actions are common to all notice resolutions.

    If And Then
    Refund is due Normal processing time has not elapsed, per IRM 21.4.1.3, Refund Inquiry Response Procedures Advise taxpayer of normal processing time, per IRM 21.4.1.3.1.1 , Return Not Found.
    Refund is due Normal processing time has elapsed Research, per IRM 21.4.1, Refund Research.
    There is a balance due Taxpayer agrees 1. Request full payment.
    2. See IRM 5.19.1.5.2, Can Full Pay Balance Due Now (Payoff).
    There is a balance due A payment is not properly credited Transfer credit, per IRM 21.5.8, Credit Transfers
    There is a balance due Taxpayer agrees but cannot pay in full Set up a payment plan, per IRM 5.19.1.5.4, Can Pay by Installments.
    Penalties and interest are assessed Taxpayer does not agree See IRM 20.1, Penalty Handbook, LEM 20, Penalty and Interest or IRM 20.2, Interest .
    Taxpayer does not agree with notice Documentation is needed from taxpayer or files 1. Request documentation.

    Reminder:

    If you are staffing the toll-free lines at a remote site and you will need to ESTAB for a document to resolve the issue, follow
    the procedures in IRM 21.5.2.3, Adjustment Guidelines — Research.

    2. Open a control base.
    3. If necessary suppress all balance due notices (STAUPS/TC 470).
    4. See IRM 21.5.4, General Math Error Procedures , IRM 21.5.10, Examination Issues, and IRM 21.7.12, Non-Master File (NMF) Adjustments.

21.3.1.3.1 
(10-01-2003)
Dual Notices

  1. Section 3201(d) of RRA 98 requires the Service to (whenever practicable) mail duplicate notices separately to each individual
    filer of a joint tax return. This process is referred to as dual notice issuance. Systemic generation of dual notices began
    in calendar year 2001.

  2. Dual notices are issued as follows:

    1. All notices are sent dual if Service records indicate filers live at different addresses.

    2. If Service records indicate filers live at the same address, then any notice required by statute must be sent separately to
      each spouse. In addition, certain other notices that contain elements of notices required by statute must be sent separately.
      For examples of notices that are sent separately, see IRM 4.10.1.6.8, Separate Notice Requirements for Joint Returns, and IRM 5.1.10.4, Contact Letters.

  3. Notices that do not need to be sent separately include Submission Processing pipeline notices (including Math Error notices)
    and Collection installment agreement monthly reminder notices. Most of the dual notices include language to explain why the
    Service is sending seemingly duplicate notices.

21.3.1.3.2 
(10-01-2002)
Examination Notice of Deficiency Procedures

  1. If taxpayers have questions concerning notices of deficiency, direct them to call the number on the notice, or write to address
    shown. Advise of the following:

    1. If they choose to petition Tax Court, they have 90 days from the notice date.

    2. A telephone call or written communication does not extend the time for filing a petition with the Tax Court.

    3. The last date to file a petition is included in the header information of the letter.

21.3.1.4 
(10-01-2002)
Notice Descriptions

  1. The most common notices are listed below and divided into four categories:

    • IMF Individual Master File (IMF) notices

    • Business Master File (BMF) notices

    • Non-Master File (NMF) notices

    • Submission Processing Notices

21.3.1.4.1 
(10-01-2006)
CP 05 Information Regarding Your Refund

  1. Notice CP 05, Information Regarding Your Refund, is issued to taxpayers with Criminal Investigation – Fraud Detection Center (CI-FDC) Z or P- freezes on their refunds. The
    notice informs the recipient their refund is being held pending additional review.

  2. See IRM 21.5.6.4.43, Notice CP 05, Information Regarding Your Refund, Issued to Taxpayers with CI-FDC Z or P Freeze, for additional information.

21.3.1.4.2 
(10-01-2006)
CP 08 Additional Child Tax Credit

  1. A CP 08, You May Qualify for a Refund From the Additional Child Tax Credit, is issued to notify a taxpayer of potential eligibility to claim additional Child Tax Credit. The notice is issued when
    the taxpayer:

    • Computes an amount for the Child Tax Credit, has zero tax liability, and fails to use the remaining portion of the credit
      to claim the Additional Child Tax Credit, or

    • Indicates eligibility for the Child Tax credit (by checking the boxes on line 6c) but does not claim the Child Tax Credit
      due to zero tax liability and does not claim the Additional Child Tax Credit.

  2. See IRM 21.6.3.4.2.8.3, CP 08, Additional Child Tax Credit, for procedures on working CP 08 notices.

21.3.1.4.3 
(10-01-2004)
CP 09 EIC Notice

  1. Notifies taxpayer of possible eligibility for Earned income Tax Credit (EIC).

    1. Answer questions concerning eligibility and how to claim the credit. If the taxpayer qualifies, advise as in b through d.

    2. Advise the taxpayer to provide the qualifying childs Social Security Number (SSN) and sign the notice.

    3. Inform the taxpayer that if the EIC is allowed and the taxpayer has more than three children, the additional Child Tax Credit
      may be affected. Advise the taxpayer to complete Form 8812, Additional Child Tax Credit. Publication 972, Child Tax Credit, has more information.

    4. Instruct the taxpayer to submit the completed and signed CP 09 in the envelope provided.

  2. Refer to IRM 21.6.3.4.2.7.8, EIC – CP 09/CP 27.

21.3.1.4.4 
(10-01-2002)
CP 10 Math Error, Overpaid Credit

  1. Notifies taxpayer that an overpayment applied to the next years tax as a credit-elect was reduced due to an error on a 1040-series
    return.

    1. Research IDRS.

    2. Explain reason for notice.

    3. Take actions indicated in the following table.

    If And Then
    Taxpayer agrees A refund is due 1. Advise taxpayer to correct his/her copy of the return.
    2. Taxpayer should receive refund in six weeks of the notice date if no other Federal taxes or obligations are owed and a
    refund amount remains.
    3. Explain a Treasury Offset Program (TOP) offset to taxpayer.
    Taxpayer agrees A balance is due 1. Advise taxpayer to correct his/her copy of the return.
    2. Request full payment.
    3. See IRM 5.19.1.5.2, Can Full Pay Balance Due Now (Payoff.
    Taxpayer does not agree A refund is due 1. Adjust account using oral statement if applicable.
    2. Request documentation only if necessary.
    3. Advise taxpayer he will receive the refund in six weeks if he owes no other taxes.
    4. Advise and explain a TOP offset to the taxpayer.
    Taxpayer does not agree A balance is due 1. Refer to IRM 21.5.4, General Math Error Procedures, for information on working math errors.
    2. Advise taxpayer to pay balance due if applicable.

21.3.1.4.5 
(10-01-2007)
CP 11 Math Error, Balance Due

  1. Issued as a first notice. Notifies taxpayer of an error in the math on an individual return that results in a balance due.
    Refer to table in IRM 21.3.1.4.4, CP 10, Math Error, Overpaid Credit, above for required actions and IRM references for full instructions.

21.3.1.4.6 
(10-01-2002)
Submission Processing
Missing Information 12C

  1. During processing a Letter 12C is sent to IMF taxpayers requesting information missing from the return.

  2. Returns are not returned to the taxpayer. The return is suspended awaiting response from the taxpayer.

21.3.1.4.6.1 
(10-01-2008)
Researching 12C

  1. Check IDRS for the following Information:

    If Then
    Code and Edit sends the request for information See IDRS for a dummy module with the information Letter 12C.
    Error Resolution sends the request for information Use Command Code (CC) ERINV to view the ERS status code information. See IRM 21.4.1−1, Error Resolution System (ERS) STATUS CODES .
    The taxpayer has received the Letter 12C Advise the taxpayer to respond to the letter supplying the requested information.

21.3.1.4.7 
(10-01-2007)
CP 12 Math Error, Overpayment

  1. Issued as a first notice to inform the taxpayer of an error in the math on an individual return that changes the refund amount.
    Refer to table in IRM 21.3.1.4.4, CP 10, Math Error, Overpaid Credit, above for required actions and IRM references for full instructions.

21.3.1.4.7.1 
(10-01-2002)
CP 12A EIC Math Error, Overpayment

  1. Issued as a first notice when:

    1. EITC was claimed on a return and there is a math error

    2. There is an invalid SSN (primary or secondary) on the return.

  2. The notice informs taxpayer of an error in the math on an individual return that changes the refund amount. Refer to table
    in IRM 21.3.1.4.4, CP 10, Math Error, Overpaid Credit, above for required actions and IRM references for full instructions.

21.3.1.4.8 
(10-01-2007)
CP 13 Math Error, Settlement

  1. Informs taxpayer that:

    1. An error occurred in the math on an individual return.

    2. Payment is not required if the balance due on the notice is less than $5.00.

    3. An overpayment of less than $1.00 is not refunded without a written request from the taxpayer. Refer to the table in IRM
      21.3.1.4.4, CP 10, Math Error, Overpaid Credit, above for required actions and to IRM references for full instructions.

21.3.1.4.9 
(10-01-2002)
CP 14 No Math Error, No Estimated Tax Discrepancy, Balance Due

  1. Issued as a first notice to taxpayer of a balance due when no math error or ES discrepancy exists. Do the following:

    1. Research IDRS.

    2. Explain reason for balance due. It may be the result of a missing payment or the assessment of a penalty.

    3. If taxpayer agrees with the notice, request payment in full (see IRM 5.19.1, Balance Due).

    4. If a payment is missing, research IDRS for payment (see IRM 21.5.8, Credit Transfers).

    5. Check for pending installment agreement (IA), the taxpayer may have requested an IA.

21.3.1.4.10 
(10-01-2009)
CP 15 Civil Penalty

  1. Notifies taxpayer a civil penalty was assessed and why it was assessed.

    If Then
    Taxpayer agrees with the notice Request payment in full. See IRM 5.19.1, Balance Due.
    Taxpayer disagrees 1. Advise taxpayer to send documentation to assessing function.
    2. See IRM 20.1, Penalty Handbook and LEM 20, Penalty and Interest.

    Note:

    When a civil penalty with Penalty Reference Numbers (PRN) 565 or 648 is charged against taxpayers who filed a married filing
    joint return, the entire amount of the penalty will be assessed against each spouse individually; i.e. the full amount will
    be separately assessed against both the primary and secondary taxpayers TINs. The Internal Revenue Service can collect the
    penalty from either taxpayer in any combination. However the total amount collected shall not exceed the single amount assessed
    against either taxpayer individually. See IRM Exhibit 20.1.1−5 , Penalty Reference Numbers (500 Series), and IRM Exhibit 20.1.1−6, Penalty Reference Numbers (600 Series) for a complete listing of PRNs.

21.3.1.4.11 
(10-01-2007)
CP 15B Trust Fund Recovery Civil Penalty

  1. Notifies taxpayer a trust fund recovery civil penalty was assessed.

    If Then
    Taxpayer requests a payment plan Establish an installment agreement (IA). Refer to IRM 5.19.1, Balance Due.
    Taxpayer disputes assessment. Explain that he/she was identified as a responsible officer of a corporation that owes trust fund monies.
    Taxpayers claims he/she is not a responsible officer. Refer taxpayer to the Advisory group that handles the address where they reside. Refer to IRM 5.19.1.4.4 , Trust Fund Recovery Penalty Issues.

21.3.1.4.12 
(10-01-2007)
CP 16 Math Error, Overpaid/Offset

  1. Issued as a first notice to inform taxpayer of an error in the math on an individual return resulting in an overpayment that
    was applied to another IMF tax liability.

    1. Explain offset process if requested to do so.

    2. See IRM 21.3.1.4.4, CP 10, Math Error, Overpaid Credit, above for resolution of math error notices.

21.3.1.4.13 
(10-01-2002)
CP 17 Notice of Refund, Excess ES Credits

  1. Notifies taxpayer of a refund of unfrozen estimated credits.

    1. Advise taxpayer no action is required.

    2. Tell taxpayer that he/she will receive refund within six weeks of the notice date if no other Federal taxes or obligations
      are owed and a refund amount remains.

21.3.1.4.14 
(10-01-2002)
CP 18 Refund Discrepancy

  1. Notifies taxpayer a portion of the refund was withheld due to an unallowable item on the return. Advise taxpayer that he/she
    will receive an explanation of the adjustment by the date stated on the notice.

21.3.1.4.15 
(10-01-2002)
CP 19 Balance Due, Unallowable Items Creating a Balance Due or a Reduction in Credits

  1. Notifies taxpayer of one or more unallowable items on the return and of a balance due. Advise taxpayer that a response is
    necessary.

    If Then
    Taxpayer agrees with notice Advise taxpayer to sign and return notice.
    Taxpayer requests a payment agreement See IRM 5.19.1, Balance Due.
    Taxpayer disagrees with notice Advise taxpayer to return bottom portion of notice along with supporting documentation or explanation.

21.3.1.4.16 
(10-01-2002)
CP 20 Overpayment Unallowable Items

  1. Notifies taxpayer of one or more unallowable items on the return as well as an overpayment. Advise taxpayer this notice requires
    a response.

    If Then
    Taxpayer agrees with tax increase Advise taxpayer to sign, date, and return bottom portion of notice.
    Taxpayer disagrees Advise taxpayer to submit documentation with bottom portion of the notice.
    Taxpayer has returned notice and a refund is due Advise taxpayer that refund will be received in four to six weeks if no other tax is due. Also advise of possible TOP offset.

21.3.1.4.17 
(10-01-2005)
CP 21A Data Processing Tax Adjustment

  1. Informs taxpayer of a DP tax adjustment resulting in a balance due when account is in Taxpayer Delinquent Account (TDA) Status.

    1. Research IDRS.

    2. Explain the reason for the notice.

  2. For resolution, follow the table below:

    If And Then
    Taxpayer agrees with notice A refund is due 1. Advise taxpayer that a refund will be issued within two weeks if no other Federal Taxes or obligations are owed and a refund
    amount remains.
    2. If two weeks have passed, see IRM 21.4.1.3, Refund Inquiry Response Procedures.
    Taxpayer agrees There is an even balance Advise no action is necessary.
    Taxpayer agrees A balance is due 1. Request payment in full. See IRM 5.19.1, Balance Due.
    Taxpayer indicates a payment was made Has not been credited 1. Research for missing payment.
    2. Transfer the payment if needed.
    3. See IRM 21.5.8, Credit Transfers.
    Taxpayer disagrees Adjustment resulted from a DP tax adjustment Make necessary corrections with oral statement, request written documentation if needed.
    Adjustment resulted from examination of the return Taxpayer disputes deficiency assessment Advise the taxpayer that under certain conditions, you can request an audit reconsideration. See IRM 4.13, Audit Reconsideration.
    Adjustment resulted from return executed by the service under IRC 6020(b) Taxpayer disputes deficiency assessment Advise taxpayer that he or she can request an audit reconsideration if:

    1. The taxpayer has information that was not previously considered which, if timely submitted, would have resulted in a change
      to the assessment.

    2. An original delinquent return is filed by the taxpayer after an assessment was made as a result of a return executed by the
      IRS under IRC 6020(b) or other substitute for return procedures.

    3. There was an IRS computational or processing error in assessing the tax. See IRM 4.13.1.7, Acceptance of Request.

21.3.1.4.18 
(10-01-2002)
CP 23 Estimated Tax Discrepancy, Balance Due

  1. Informs taxpayer of a discrepancy between estimated tax credits claimed on the return and credits posted to the account, resulting
    in a balance due of $1.00 or more.

  2. This notice also notifies taxpayer of a math error.

  3. Review payment amounts and dates.

    If Then
    A payment or credit-elect is missing 1. Research for missing payment.
    2. Transfer credit if appropriate.
    3. Refer to IRM 21.5.8, Credit Transfers.
    Taxpayer agrees with the notice 1. Request full payment of balance due. See IRM 5.19.1, Balance Due.

21.3.1.4.19 
(10-01-2002)
CP 24 Estimated Tax Discrepancy, Overpayment

  1. Informs taxpayer of discrepancy between estimated tax credits claimed on return and credits posted to the account, resulting
    in an overpayment of $1.00 or more. In addition to a discrepancy in estimated tax payments, a CP 24 may advise taxpayer that
    his/her return contained a math error or that the statute for refund has expired.

    If Then
    This is an estimated tax discrepancy Review payment dates and amounts shown on the notice.
    Taxpayer indicates a payment is erroneously credited to account 1. Research IDRS to locate account where payment belongs.
    2. Apply to correct account, or
    3. If you cannot locate correct account, transfer to Excess Collection or Unidentified File.
    4. See IRM 21.5.8, Credit Transfers.
    Taxpayer received a refund of an erroneously credited payment See IRM 21.4.5, Erroneous Refunds.
    Taxpayer agrees with notice 1. Advise taxpayer a refund will be issued within six weeks of the date on the notice.
    2. Advise taxpayer of a possible offset.
    Notice contains math error information See math error notice resolution in IRM 21.3.1.4.4, CP 10, Math Error, Overpaid Credit.

21.3.1.4.20 
(10-01-2004)
CP 25 Estimated Tax Discrepancy

  1. Informs taxpayer of a discrepancy between estimated tax credits claimed on return and credits posted to the account, resulting
    in an overpayment of less than $1.00, or a balance due of less than $5.00.

  2. This notice also informs taxpayer that no refund is issued for less than $1.00 unless he/she requests it in writing, and no
    payment is necessary of a balance due.

  3. See table in IRM 21.3.1.4.18, Estimated Tax Discrepancy Balance Due, above for resolution.

21.3.1.4.21 
(10-01-2003)
CP 27 EITC Notice

  1. Informs taxpayer without children of possible eligibility for the EITC.

    1. Answer questions about eligibility.

    2. Advise how to claim the credit.

    3. If the taxpayer qualifies, advise taxpayer to sign the notice and return in the envelope provided.

  2. See IRM 21.6.3.4.2.7.8, EITC – CP 09/CP 27.

21.3.1.4.22 
(10-01-2003)
CP 29 Amended Return—No Original

  1. Issued to request information if an amended return posts and no original return was received.

  2. See IRM 21.5.6.4.7, E— Freeze instructions.

21.3.1.4.23 
(10-01-2002)
CP 30 Estimated Tax Penalty

  1. Informs taxpayer all or part of an overpayment has been applied to an estimated tax penalty. Advises taxpayer all or some
    of required estimated tax payments were not timely.

    If Then
    Taxpayer indicates a payment was not credited to account Research for missing payment.
    Overpayment was to be applied to next years estimated tax Advise taxpayer to increase payments on remaining vouchers.
    Taxpayer qualifies to have part or all of penalty removed Advise taxpayer to complete Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts, and submit to Customer Service.

21.3.1.4.24 
(10-01-2002)
CP 30A Estimated Tax Penalty

  1. Notifies taxpayer that Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, was incorrect, resulting in a refund.

    1. A response is not required unless taxpayer disagrees.

      If Then
      Taxpayer disagrees Review Form 2210 and explain how amount was computed.
      Taxpayer still disagrees Advise taxpayer he/she may either:
      1. Return the voided check with a written explanation of why they disagree, or
      2. Keep check and pay penalty if he/she receives notice that a penalty has been assessed.

    2. See IRM 21.4.3, Returned Refunds/Releases, for more information on returning refund checks.

21.3.1.4.25 
(10-01-2002)
CP 31 Undelivered Refund Check

  1. Informs taxpayer a refund was returned as undeliverable. The notice asks taxpayer to supply the correct address.

    If Then
    Taxpayer states he/she has not moved and gives address that exactly matches Master File (MF) Refer to IRM 21.4.3, Returned Refunds/Releases for procedures before allowing interest to compute.
    There is a new address 1. Input address with CC CHK64.
    2. See IRM 21.4.2, Refund Trace and Limited Payability Overview.

21.3.1.4.26 
(10-01-2002)
CP 32/32A New Refund Check Issued

  1. Issued when an original refund check is not cashed within one year. The CP 32 is sent and the refund reissued. The CP 32A
    informs taxpayer we will not reissue again without a request from the taxpayer.

    If Then
    Taxpayer has moved Correct address.
    More than 30 days have passed since the notice was issued and taxpayer has not received the refund See IRM 21.4.1, Refund Research.

21.3.1.4.27 
(10-01-2002)
CP 33 Refund Delay Letter

  1. Informs taxpayer of a delay in processing a return (in the unpostables unit).

    1. See IRM 21.5.5, Unpostables, for resolution of unpostables.

    2. Advise of appropriate processing time.

21.3.1.4.28 
(10-01-2007)
CP 36 General Information

  1. This is an internal notice issued when there is a duplicate filing condition on the module, the duplicate filing case is controlled
    on IDRS and assigned for review. See IRM 21.6.7.4.4.1 , CP 36 — Control, for more information.

21.3.1.4.28.1 
(10-01-2002)
CP 36D

  1. This is an internal notice issued when a Transaction Code (TC) 150 with Document Code 05, 07, 09, or 11, posts with blocking
    series 920–929 (indicating that Form 8379, Injured Spouse Claim and Allocation, was filed). The original return and claim are sent to Customer Service for processing.

21.3.1.4.29 
(10-01-2005)
CP 39 Overpayment Applied

  1. Informs taxpayer an overpayment for a return on which the taxpayer is the secondary SSN has been applied to the balance due
    on a joint return for another year, which is the return identified in the heading of the notice. The notice explains that
    a joint filer is responsible for paying the tax due on the return as originally filed and any tax resulting from subsequent
    adjustment (e.g., an examination). Advise taxpayer this is an information notice and a response is not required.

21.3.1.4.30 
(10-01-2007)
CP 41 Unresolved Manual Refund Notice

  1. A CP 41, an internal notice, is generated when:

    1. An unresolved manual refund freeze (—X Freeze) is present on the Master File for more than seven cycles.

    2. The account is not in zero balance because an adjustment did not post within the seven cycles.

    3. The notice shows the manual refund created the balance due condition.

      Exception:

      A TC 840 in Blocking Series 600–609 suppresses the CP 41 for 20 cycles. A TC 840 in Blocking Series 9XX with a Julian date
      under 400 bypasses the —X Freeze and issuance of the CP 41.

  2. The CP 41 is forwarded to the Files function. The manual refund document is pulled and the case is forwarded to Customer
    Service to be worked.

  3. See IRM 21.5.6.4.39, —X Freeze for procedures for working an —X Freeze.

21.3.1.4.31 
(10-01-2007)
CP 42 Notice of Offset

  1. Informs taxpayer of an offset of an overpayment for the return that is the subject of the notice to satisfy a Federal tax
    obligation for a joint return for another tax year on which the taxpayer was the secondary SSN. Be aware of disclosure criteria. See IRM 21.1.3.2, General Disclosure Guidelines.

    If And Then
    Taxpayer agrees with notice An overpayment remains; Advise the taxpayer he should receive a refund within six weeks, if he owes no other taxes.
    Note: Advise taxpayer of a possible TOP offset for child or spousal support, Federal non-tax debts, or state income tax.
    Six weeks pass the taxpayer does not receive his refund check; Advise the taxpayer to check and see if he owes other taxes (e.g., state or are they behind on child support).
    If not; see IRM 21.4.2, Refund Trace and Limited Payability.
    Taxpayer agrees with the notice. The balance due remains on a prior year account. Request payment in full.
    See IRM 5.19.1.3.3.2, Adjusting Tax for a Balance Due.
    Taxpayer indicates he sent in a payment There is no payment (TC 670) posted on the account Research to locate the missing payment.
    See IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees Taxpayer states spousal obligation is not correct 1. Request taxpayer to supply justification to the Account Management function.
    2. Request written documentation only if the issue cannot be resolved with oral statement.
    Taxpayer disagrees Balance due arose from a return filed by one spouse 1. Advise the spouse who is not liable to file Form 8379, Injured Spouse Claim and Allocation.
    2. See IRM 21.4.6.5.3, Injured Spouse Inquiries.

    Note:

    For an audit reconsideration, see IRM 21.5.10, Examination Issues. For a Substitute for Return (SFR), see IRM 5.19.2, Liability Collection—Return Delinquency.

21.3.1.4.32 
(10-01-2007)
CP 44 Credit Available for Application

  1. Issued when there is a refundable credit of ≡ ≡ ≡ ≡ ≡ or more on a tax module and there is a TC 130 present in the entity
    module. This is a three part notice; Part 1 is sent to the taxpayer and Parts II and III are generated to the Service.

    1. Informs the campus that an IMF overpayment is available for application to a non-IMF outstanding liability, or of an overpayment
      available to use in an Offer-in-Compromise.

    2. Informs taxpayer an available overpayment was applied to an outstanding balance on another account.

  2. After application of credit, remaining overpayment is refunded.

    1. Advise taxpayer to allow six to eight weeks on a non-individual account for IRS to determine if a tax liability exists.

    2. If more than eight weeks have elapsed and taxpayer has not received any information, prepare Form 4442, Inquiry Referral and send to collection function in the Atlanta campus. Include taxpayers day and evening telephone numbers.

21.3.1.4.33 
(10-01-2004)
CP 49 Overpayment Adjustment-Offset

  1. Informs taxpayer the overpayment on an individual return was applied to a prior year’s unpaid IMF liability.

    If And Then
    Taxpayer agrees with notice A balance due remains on prior year Request full payment. See IRM 5.19.1, Balance Due.
    Taxpayer agrees with notice An overpayment remains 1. Advise taxpayer that refund will be issued within six weeks if no other Federal taxes or obligations are owed (TOP offset
    for child or spousal support, Federal non-tax debts, or state income tax) and a refund amount remains.
    2. See IRM 21.4.1, Refund Research, if six weeks have passed.
    Payment was made Was NOT properly credited to the prior year account 1. Research IDRS to locate payment (e.g. TC 670.)
    2. See IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees with notice Supplies supporting information 1. Adjust the account as appropriate.
    2. If the adjustment results in a balance due, see IRM 5.19.1.3.3.2, Adjusting Tax for a Balance Due.
    3. Send the taxpayer a notice explaining the adjustment to tax.
    4. Advise the taxpayer about Penalty and Interest that are charged until the account is paid in full. See IRM 20.1, Penalty Handbook, IRM 20.2, Interest and LEM 20, Penalty and Interest.

21.3.1.4.34 
(10-01-2002)
CP 51A Form 1040, 1040A, 1040EZ, and Non-Compute

  1. Notifies taxpayer the IRS computed his/her tax and gives balance due. Interest or penalty for late payment is not charged
    if amount due is paid within 30 days of notice date or by due date of return.

  2. Publication 967, the IRS Will Figure Your Tax, explains the criteria for IRS computation of tax for taxpayer.

    If Then
    Taxpayer agrees with notice Request payment in full per IRM 5.19.1,Balance Due.
    Payment was not properly credited to account Research IDRS for missing payment per IRM 21.5.7, Payment Tracers.
    Taxpayer disagrees Request taxpayer supply justification to Customer Service. Request written documentation only if issue not covered by oral
    statement.
    Taxpayers disagreement involves an item not reported on original return Advise taxpayer to file amended return, Form 1040X, Amended U.S. Individual Income Tax Return.

21.3.1.4.35 
(10-01-2002)
CP 51B Form 1040, 1040A, 1040EZ Non-Compute

  1. Informs taxpayer the IRS computed his/her tax and also provides refund amount. Advise taxpayer that refund should be received
    within 2 weeks of the date of the notice if no other Federal taxes or obligations are owed and a refund amount remains.

    If Then
    Taxpayer agrees with notice No action is necessary.
    Taxpayer disagrees with notice Follow instructions for CP 51A above.

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