IRS Notices
What does a CP14 notice inform the taxpayer of?
CP14 = Balance Due Notice — first notice informing the taxpayer they owe money.
What does CNC stand for, and what does it mean for the taxpayer?
CNC = Currently Not Collectible; IRS pauses collection due to verified financial hardship.
Which form allows you to view IRS records but not represent the taxpayer?
8821
What should you do if a client refuses verification but wants to discuss their case?
End the call politely and document refusal in IRS Logics.
What does “Penalty Abatement” mean?
Penalty Abatement = IRS removal or reduction of penalties when valid cause exists.
Which notice is the final warning before the IRS issues a levy?
LT11 / Letter 1058 = Final Notice of Intent to Levy; last warning before enforcement.
What IRS form is used to request an Installment Agreement?
Form 9465 = Request for Installment Agreement (payment plan).
Which form grants full representation authority before the IRS?
2848
What’s the best de-escalation technique for a frustrated client?
Stay calm, acknowledge frustration, and explain the next step clearly.
What is the First-Time Abatement (FTA) program, and what are its basic qualifications?
First-Time Abatement (FTA) = Relief for taxpayers who are compliant for 3 prior years, filed all returns, and paid or arranged payment.
What is the main purpose of the CP504 notice?
CP504 = Intent to Levy notice (IRS warns of possible levy on assets if unpaid).
What resolution allows a taxpayer to settle their balance for less than the full amount owed?
Offer in Compromise (OIC) = Settles tax debt for less than full amount owed.
What form is used to request a tax transcript or copy of a tax return?
4506-T
If a client uploads blurry or cropped tax documents, what’s the correct procedure?
Send a document correction request and note issue in IRS Logics.
Name one example of a reasonable cause that could qualify a taxpayer for penalty abatement.
Examples: Serious illness, natural disaster, death in family, reliance on tax professional, or theft.
What does a CP2000 mean?
CP2000 = Proposed Change / Underreporter notice (IRS found mismatched income data).
What financial form is used to evaluate a taxpayer’s hardship and ability to pay?
Form 433-A/B or 433-F = Financial statement showing income, expenses, assets, and liabilities.
What form provides the IRS with a taxpayer’s financial information during resolution review?
433-F = Used for financial disclosure in payment or hardship review.
A client calls saying they received a CP504 — what should be your first step?
Check transcripts, confirm notice type, and document case immediately; prepare to prevent enforcement.
Which penalty is applied when a taxpayer files their return after the due date and still owes a balance?
Failure to File
What notice provides the right to a Collection Due Process hearing before the IRS can levy assets?
LT11 / Letter 1058 = Grants right to a Collection Due Process (CDP) hearing before levy
What should an analyst do if a client in CNC status starts a new job and receives an IRS notice?
Update IRS Logics, request updated financials, and escalate to Financial Review or CPA — verify continued CNC qualification.
Which form allows a taxpayer to request refund or abatement of penalties already assessed?
Form 843 = Claim for Refund and Request for Abatement of Penalties or Interest.
A client says their refund was taken by the IRS even though their return was just filed. What most likely happened?
refund was applied to a prior balance
Before requesting First-Time Abatement (FTA), the analyst must confirm the taxpayer:
No prior penalties for the past three years and currently compliant