RECOMMENDATION 2755
RECOMMENDATION TEXT:
TAXPAYER ONLINE ACCOUNT – Taxpayers can create and access taxpayer online accounts. Please go to irs.gov, select “Sign into your Online Account” to get started. Please add this text to alert taxpayers that they have the option to create their online account. This will help taxpayers remain or become compliant, increase efficiency, reduce frustration. The IRS will also receive less phone calls, less paper, less frustrated taxpayers.
IRS Action: Adopted
Not all taxpayers receive the TDC notice (QR code) so by adding this verbiage to all notices will only increase confusion. AUR is working with OTC to redesign the CP2000 notice and will be removing the TDC QR code and will be directing taxpayers to an online landing page which will provide them with all the ways they can reply to an AUR notice.
RECOMMENDATION 2756
RECOMMENDATION TEXT:
Social Security Number. Please redact all but the last four of the taxpayer’s SSN. To prevent ID theft.
IRS Action: Adopted
Addressed in upcoming redesign.
RECOMMENDATION 2757
RECOMMENDATION TEXT:
We are proposing changes to your 2021 Form 1040 tax return. This is not a bill. We received information from third parties such as employers or financial institutions that doesn’t match the information you reported on your tax return. This notice: Proposes a change to tax and/ or payments and credits (such as federal income tax withheld, earned income credit, etc.) that you originally reported. Provides you with an opportunity to agree or disagree with the proposed changes. if our information is correct, you will owe $0(including interest), which you need to pay by January 18, 2023. We propose changes to your 2021 Form 1040 tax return. This is not a bill. We received information from third parties such as employers or financial institutions that does not match the information you reported on your 2021 tax return. This Notice of Proposed Changes: Proposes a change to tax and/or payments and credits (such as federal income tax withheld, earned income credit, etc.) that you originally reported. Provides you with an opportunity to agree or disagree with the proposed changes.
If our information is correct, you will owe $0 (including interest), which you need to pay by January 18, 2023. No passive voice. Don’t use “ing”. The original text is hard to understand and condescending. The entire CP2000 is a “proposal”. Therefore, we should use consistent words. “Notice of Proposed Changes” and not “notice”.
IRS Action: Adopted
Addressed in upcoming notice redesign.
RECOMMENDATION 2758
RECOMMENDATION TEXT:
Payments Made, Claimed or Reported To alert taxpayer that all various forms or payments are included.
IRS Action: Not adopted
The current language relates to the Form 1040. No changes will be made.
RECOMMENDATION 2759
RECOMMENDATION TEXT:
Summary of proposed changes Summary of Proposed Changes: In titles, keep words capitalized
IRS Action: Not adopted
No changes needed. This is OTC formatting/guidance
RECOMMENDATION 2760
RECOMMENDATION TEXT:
Proposed amount due by January 18, 2023 Proposed Amount due by January 18, 2023 In titles, keep words capitalized
IRS Action: Not adopted
No changes needed. This is OTC formatting/guidance.
RECOMMENDATION 2761
RECOMMENDATION TEXT:
Reminder: This is not a bill. We haven’t charged the proposed amount due. Reminder: This is not a bill. We have not assessed the proposed amount due. Do not pay the Proposed Amount due unless you agree with the IRS proposed changes. Make it clear to taxpayer that this is not a bill. It’s a proposed assessment and taxpayer needs to take action.
IRS Action: Not adopted
Based on IRSAC feedback, taxpayers read on a 4th grade level and don’t understand the word “assessed”. Discouraging the taxpayer to make a payment could result in additional interest if they end up owing. The verbiage will be changing with upcoming notice redesign.
RECOMMENDATION 2762
RECOMMENDATION TEXT:
You can now reply to this notice by registering for IRS Secure Messaging at www.irs. gov/connect. Here you’ll be able to upload your response documents via a secure portal. You can now reply to this Notice of Proposed Changes by registering for IRS Secure Messaging at www.irs.gov/ connect. Here you can upload your Response Form and associated documents via a secure portal. Explains better how to use the QR Code.
IRS Action: Adopted
Addressed in upcoming notice redesign.
RECOMMENDATION 2763
RECOMMENDATION TEXT:
What you need to do immediately If you need more time to respond to this notice, contact us at 1-800-xxx-xxxx Interest will continue to accrue during this period if the information in this notice is correct. What you need to do immediately: If you need more time to respond to this Notice of Proposed Changes, please contact us at 1-800- xxx-xxxx. Interest will continue to accrue, and penalties may apply if, when this matter is resolved, taxes are owed. Need to be more descriptive so that taxpayer knows what they need to do immediately. And that interest and penalties may apply. Fixing grammar and punctuation.
IRS Action: Adopted
Addressed in upcoming notice redesign.
RECOMMENDATION 2764
RECOMMENDATION TEXT:
Review this notice, and compare our changes to the information on your 2021 tax return. If you agree with the proposed changes. Complete, sign, and date the Response form on Page 7 (we require both spouses’ signatures if you filed married filing jointly), and mail it to us along with your payment of $0 so we receive it by January 18, 2023. Do not file an amended return (Form 1040X) if you fully agree with our changes. We’ll make the correction when we receive your signed response. Review this Notice of Proposed Changes, and compare our proposed changes to the information you reported on your 2021 tax return. If you agree with the proposed changes: Complete, sign, and date the Response Form on Page 7 of this Notice of Proposed Changes (we require both spouses’ signatures if you filed married filing jointly). Mail the Response Form, to the address in the top left corner of this Notice of Proposed Changes; or Fax the Response Form to the fax number in the top right corner of this Notice of Proposed Changes; or upload the Response Form using the QR code above. Please see page XX of this Notice of Proposed Changes, “2. Indicate your Payment Option” to either pay the Proposed Amount in full or to enter into an Installment Agreement. We must receive your Response Form and payment by January 18, 2023. Do not file an amended return (Form 1040X) if you fully agree with our changes. We will correct your tax file when we receive your signed Response Form. Must refer to Proposed Notice as Notice of Proposed Changes throughout. Cannot Interchange Notice of Proposed Changes with notice. Capitalize words in specific documents. Directions where to send or Fax, How to Pay. Gives taxpayers a better understanding of what they need to do if they agree with the Proposed Changes and the deadline.
IRS Action: Adopted
Addressed in upcoming notice redesign.
RECOMMENDATION 2765
RECOMMENDATION TEXT:
If you don’t agree with the proposed changes: Complete the Response form on Page 7, and send it to us along with a signed statement explaining your disagreement and include any documentation that supports your claim so we receive it by January 18, 2023. If you have allowable costs or expenses related to the unreported income that will change our proposal, it may benefit you to include the applicable form or schedule with your response. It is not necessary to file an amended return (Form 1040X) for 2021 if you don’t agree with our changes. We’ll review your response and make any applicable corrections. However, if you choose to file an amended return, write “CP2000” on top of it and attach it behind your completed Response form. If you need assistance contact us at 1-800-xxxxxxxx. If you do not agree with some or all the proposed changes: Complete the Response Form on Page 7 of this Notice of Proposed Changes, and mail, fax or upload the Response Form, along with your signed statement explaining the items with which you disagree. Include any documentation that supports the items with which you disagree. We must receive your Response Form and Signed Statement, along with any documentation by January 18, 2023. If you have allowable costs or expenses related to the unreported income that will change our Proposed Amount Due, you may benefit by including the applicable IRS tax form or schedule with your Response Form and Signed Statement. It is not necessary to file an amended return (Form 1040X) for 2021 if you do not agree with our changes. We will review your response and make any applicable corrections. However, if you choose to file an amended return, write “CP2000” on the top of the amended return (1040X) and attach it to your completed Response Form. If you need assistance, please contact us at 1-800- xxxxxxx. Gives taxpayers a clear understanding of what they need to do if they do not agree with some or all the proposed changes. How to respond, what to include.
IRS Action: Adopted
Addressed in upcoming notice redesign. Taxpayer will be provided with a landing page which will give them all the information needed and how to respond.
RECOMMENDATION 2766
RECOMMENDATION TEXT:
If we don’t hear from you If we do not hear from you: Don’t use contractions. This is a formal letter. Not a letter between friends.
IRS Action: Not adopted
No changes needed, Form 15214 (Rev. 1-2021) Catalog Number 72636A publish.no.irs.gov Department of the Treasury – Internal Revenue Service following OTC plain language guidance.
RECOMMENDATION 2767
RECOMMENDATION TEXT:
If we don’t receive your response by January 18, 2023, we’ll send you a Statutory Notice of Deficiency followed by a final bill for the proposed amount due. During this time, interest will continue to accrue, and penalties may apply. If we do not receive your response by January 18, we will send you a Statutory Notice of Deficiency, followed by a final bill for the Proposed Amount Due. During this time, interest will continue to accrue, and penalties may apply. Explains what the IRS will do. No contractions.
IRS Action: Not adopted
No changes needed, following OTC plain language guidance.
RECOMMENDATION 2768
RECOMMENDATION TEXT:
This section tells you specifically what income information the IRS received about you from others (including your employers, banks, mortgage holders, etc.). This information doesn’t match the information you reported on your tax return. This section outlines income, credits and/or possible deductions not included on your 2021 tax return, but that other (including employers or financial institutions, etc.) reported to the IRS. Makes clear that the IRS is using what taxpayer originally reported vs. what third parties reported to the IRS.
IRS Action: Adopted
Removed as part of the notice redesign
RECOMMENDATION 2769
RECOMMENDATION TEXT:
Misidentified income. If any of the income shown on this notice isn’t yours, send us the name, address, and taxpayer identification number of the person who received the income. To prevent future incorrect reporting to the IRS, notify the payer to adjust their records to show the correct name and taxpayer identification number. Misidentified Income. If any of the income shown on this Notice of Proposed Changes is not yours, and you know who received this misidentified income, please send us the name, address, and taxpayer identification number of the person who instead received the income. To prevent future incorrect third-party reporting to the IRS, notify the payer, or third party, to adjust their records to show the correct recipient’s name and taxpayer identification number. To make uniform and clearly state the issue. This explains Misidentified Income.
IRS Action: Not adopted
Will be changed as part of the notice redesign. If the income shown above isn’t yours, notify the payer above to correct their records to prevent future incorrect reporting to the IRS. Send us the name and taxpayer identification number of the person who received the income, if known.
RECOMMENDATION 2770
RECOMMENDATION TEXT:
Form W-2 or 1099 not received. The income reported on your return doesn’t match the documents we received from your employer or payers. The law requires you to accurately report all income you receive. If your employers don’t send proper information documents or forms (for example, Form W-2, Wage and Tax Statement, Form 1099), you must estimate your income based on your paycheck stubs, bank statements, or other records and include your estimate on your tax return. Form W-2 or 1099 Not Received. The income reported on your return does not match the documents we received from your employer or third-party payers. The law requires that you accurately report all income received. If your employers do not send proper information documents or forms (for example Form W-2 or Form 1099), you must estimate your income based on your paycheck stubs, bank statements, or other records and include your estimate on your tax return. To make uniform and clearly state the issue. This explains W-2 or 1099 not Received.
IRS Action: Adopted
Deleting paragraph as part of notice redesign.
RECOMMENDATION 2771
RECOMMENDATION TEXT:
Unemployment compensation We’re proposing to increase your income for unemployment compensation reported to us by the payer shown in this notice. Unemployment compensation benefits are fully taxable. Payers report unemployment compensation on Form 1099- G, Certain Government Payments. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits, and we’ll review our proposal. Unemployment Compensation We propose an increase to include unemployment compensation reported by the third-party payer shown in this Notice of Proposed Changes. Unemployment compensation benefits are fully taxable. Unemployment Compensation Payers report unemployment compensation on Form 1099-G, Certain Government Payments. If you repaid any of these benefits, please provide the amounts you repaid and the dates you repaid these benefits. To make uniform and clearly state the issue.
IRS Action:
Updating with upcoming notice redesign as follows: We’re proposing to increase your income for unemployment compensation reported to us by the payer shown in this notice. Unemployment compensation benefits are fully taxable. Payers report unemployment compensation on Form 1099-G, Certain Government Payments. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits and we’ll reconsider our proposal to adjust your income.
RECOMMENDATION 2772
RECOMMENDATION TEXT:
Negative taxable income You had a zero or negative taxable income amount on your original or amended return. To ensure proper credit for deductions, this notice reflects the actual amount of your taxable income in the “Shown on return” column of the “Changes to your tax return” section. Negative Taxable Income You reported zero or negative taxable income on your original or amended return. To ensure proper credit for deductions, this Notice of Proposed Changes reflects the actual amount of your taxable income in the “Shown on return” column of the “Changes to your tax return” section. To make uniform and clearly state the issue.
IRS Action: Partially adopted
Under Consideration – Partially agree, changing as follows as part of notice redesign: You had a zero or negative taxable income amount on your original or amended return. To receive proper credit for deductions, this notice reflects the actual amount of your taxable income.
RECOMMENDATION 2773
RECOMMENDATION TEXT:
Earned Income Credit Changes to your adjusted gross income (AGI) will affect your allowable Earned Income Credit. The Earned Income Credit is based on your earned income and AGI, both of which must be less than: $21,430 with no qualifying child ($27,380 for married filing jointly), $42,158 with one qualifying child ($48,108 for married filing jointly) or $47,915 with two qualifying children ($53,865 for married filing jointly) or $51,464 with more than two qualifying children ($57,414 for married filing jointly). Earned Income Credit Changes to your adjusted gross income (AGI) affects the amount of Earned Income Credit you can claim. The Earned Income Credit is based on your earned income and AGI. To claim the Earned Income Credit, both your earned income and your AGI must be less than: $21,430 with no qualifying child ($27,380 for married filing jointly); $42,158 with one qualifying child ($48,108 for married filing jointly); $47,915 with two qualifying children ($53,865 for married filing jointly); or $51,464 with more than two qualifying children ($57,414 for married filing jointly). To make uniform and clearly state the issue. This explains Earned Income Credit.
IRS Action: Adopted
Changing as part of notice redesign as follows: Changes to your adjusted gross income (AGI) will impact your allowable Earned Income Credit. The Earned Income Credit is based on your earned income and AGI. See instructions for Form 1040 to locate the specific amount for your filing status.
RECOMMENDATION 2774
RECOMMENDATION TEXT:
Next steps Next Steps: Headings Capitalized and Bold
IRS Action: Adopted
Removed as part of upcoming notice redesign
RECOMMENDATION 2775
RECOMMENDATION TEXT:
If you agree with our proposed changes, send us your signed Response from so we receive it by the due date of this notice. After you receive the filling notice showing we’ve adjusted your account, you can use the following online payment options including:
-Pre-assessed installments and payment agreements
-Payroll deductions
IRS Action: Not adopted
Removed as part of upcoming notice redesign
RECOMMENDATION 2776
RECOMMENDATION TEXT:
If the same error has occurred in another tax year, file a Form 1040X for that tax year. If the same error occurred in another tax year, file a Form 1040X for that tax year. Remove passive voice
IRS Action: Not adopted
Removed as part of notice redesign
RECOMMENDATION 2777
RECOMMENDATION TEXT:
If you do not agree with some or all of our proposed changes, mail or fax or upload your signed Response Form so we receive it by the due date of this Notice of Proposed Changes, along with your signed statement or amended return – 1040X. Explain the items with which you disagree and include any documentation to support your disagreement. We must receive your Response Not agreeing with some or all the changes should also be included in Next Steps. As it reads now, the IRS only believes taxpayer agrees with all the proposed changes.
IRS Action: Adopted
Changing as part upcoming notice redesign : Select the DISAGREE option on the response form below. Include a signed explanation
RECOMMENDATION 2778
RECOMMENDATION TEXT:
Interest charges Interest Charges Headings Capitalized and Bold
IRS Action: Adopted
Changed with upcoming notice redesign
RECOMMENDATION 2779
RECOMMENDATION TEXT:
We are required by law to charge interest when you do not pay your liability on time. Generally, we calculate interest from the due date of your return (regardless of extensions) until you pay the amount you owe in full, including accrued interest and any penalty charges. Interest on some penalties accrues from the date we notify you of the penalty until it is paid in full. Interest on other penalties, such as failure to file a tax return, starts from the due date or extended due date of the return. Interest rates are variable and may change quarterly. (Internal Revenue Code Section 6601) Interest is calculated to 30 days from the date of the notice for domestic addresses and 60 days from the date of the notice for foreign and APO/FPO/DPO addresses. Interest will continue to accrue until you pay the amount you owe in full.
We are required by law to charge interest when you do not pay your liability on time. Generally, we calculate interest from the due date of your return (regardless of extensions) until you pay the amount you owe in full, including accrued interest and any penalties. Interest on some penalties may accrue from the date we notify you of the penalty until the penalty is paid in full. Interest on other penalties, such as failure to file a tax return, starts from the due date, or extended due date, of the return. Interest rates are variable and may change quarterly. (Internal Revenue Code Section 6601). Interest is calculated to 30 days from the date of the notice for domestic addresses and 60 days from the date of the notice for foreign and APO/FPO/ DPO addresses. Interest continues to accrue until you pay in full the amount you owe. Betters explains interest and penalties.
IRS Action: Adopted
Removed as part of notice redesign. Directing taxpayer to online services to get information about interest and penalties.
RECOMMENDATION 2780
RECOMMENDATION TEXT:
The table below shows the rates used to calculate the interest on your unpaid amount from the date the tax return was due until the tax is paid in full. For a detailed calculation of your interest, call 1-800-xxx-xxxx. The table below shows the rates we use to calculate interest on your unpaid amount, from the date the tax return was due, until you pay the tax in full. For a detailed calculation of your interest, please call 1-800-xxx-xxxx. Clarifies that interest is accruing from the date the return was due, until paid in full. Removes passive voice.
IRS Action: Adopted
Removed as part of notice redesign. Directing taxpayer to online services to get information about interest and penalties.
RECOMMENDATION 2781
RECOMMENDATION TEXT:
Additional information Additional Information: Headings Capitalized and Bold
IRS Action: Not adopted
Removed during upcoming notice redesign
RECOMMENDATION 2782
RECOMMENDATION TEXT:
For information about your rights, see the enclosed Publication 1, Your Rights as a Taxpayer. Visit www.irs.gov/cp2000 for more information about this notice, frequently asked questions, and to review the following: Publication 5181, Tax Return Reviews by Mail CP2000, Letter 2030, CP2501, Letter 2531, for more information about filing an Appeal. For tax forms, instructions, and publications, visit www. irs.gov/forms-pubs or call 800-TAX-FORM (800-829-3676). This isn’t an audit; your return may be subject to an examination. Keep a copy of this notice for your records. The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. To help you understand what these rights mean to you and how they apply, visit www.irs.gov. For information about your rights, see the enclosed Publication 1, Your Rights as a Taxpayer. Visit www.irs.gov/cp2000 for more information about this Notice of Proposed Changes, frequently asked questions about this Notice of Proposed Changes, and to review the following: Publication 5181, Tax Returns Review by Mail VP2000, Letter 2030, CP2501, Letter 2531, for more information about filing an Appeal. For Tax Forms, Instructions, and Publications, visit www.irs. gov/forms-pubs or call 800- TAX-FORM (800-829-3676). Although this Notice of Proposed Changes is not an audit, the IRS may subject your return to an examination. Keep a copy of this Notice of Proposed Changes for your records. The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when interacting with the IRS. To help understand your taxpayer rights, visit www.irs.gov/ taxpayer-bill-of-rights. Better Clarifies Additional Information.
IRS Action: Adopted
Changing as part of upcoming notice redesign: For online assistance, visit irs.gov/help. For more information about this notice, visit irs.gov/CP2000series We’re here to help you resolve the tax matters on this notice as quickly and easily as possible, without needing to go through the Appeals process. Review Publication 5181, Tax Return Reviews by Mail CP2000, Letter 2030.
RECOMMENDATION 2784
RECOMMENDATION TEXT:
Social Security Number Please redact all but the last four of the taxpayer’s SSN. To prevent ID Theft.
IRS Action: Adopted
Removing all TINs during upcoming notice redesign
RECOMMENDATION 2785
RECOMMENDATION TEXT:
Response form Response Form Capitalize all words in Titles
IRS Action: Not adopted
Disagree – following OTC guidelines
RECOMMENDATION 2786
RECOMMENDATION TEXT:
Complete both sides of this form, and upload using Secure Messaging, by January 18, 2023. If you choose to respond by mail, be sure to send it to the above address. If making a payment, use the provided voucher and send to the address provided to ensure proper application. Complete both sides of this Response Form, and mail, fax or upload using Secure Messaging, this Response Form and all other pertinent documentation, by January 18, 2023. If you choose to respond by mail, please use the address in the top left corner of this Response Form. If you chose to respond by fax, please use the fax number in the top right corner of this Response Form. If making a payment by check, use the provided voucher to ensure we properly apply your payment. Better explains taxpayer’s options. Don’t include an envelope.
IRS Action: Adopted
Disagree, will be changing with upcoming notice redesign. Complete this form and return to us using the stub by April 24, 2024. Scan the QR code or visit irs.gov/reply for information on how to respond.
RECOMMENDATION 2787
RECOMMENDATION TEXT:
1. Indicate your agreement or disagreement 1. Indicate your Agreement or Disagreement: Keep titles capitalized
IRS Action: Not adopted
Disagree, following OTC guidelines
RECOMMENDATION 2788
RECOMMENDATION TEXT:
I agree with all changes I consent to the assessment of my 2021 income tax, and understand that: I owe $XXXX in additional tax, payment adjustments, and interest. The IRS is required by law to charge interest on taxes that weren’t paid in full by April 18, 2022. The IRS will continue to charge interest until I’ve paid the tax in full. Certain penalties may also apply. I can file a claim for a refund at a later date. By signing this form, I cannot challenge these changes in the U.S. Tax Court unless the IRS determines after the date I sign this form that I owe additional taxes for 2021. Please sign and return this form using Secure Messaging or mail by January 18, 2023. I agree with all changes: I consent to the assessment of my 2021 income tax, and understand that: I owe $XXXX in additional tax, payment adjustments, and interest. The IRS is required by law to charge interest on taxes that weren’t paid in full by April 18, 2022. The IRS will continue to charge interest until I’ve paid the tax in full. Certain penalties may also apply. I can file a claim for a refund at a later date. By signing this Form, I cannot challenge these changes in the U.S. Tax Court unless the IRS determines after the date I sign this form that I owe additional taxes for 2021. Please sign and return this Form using Secure Messaging or mail by January 18, 2023. Clarifies what taxpayer is agreeing to.
IRS Action: Not adopted
Disagree, removing the “Please sign and return this Form using Secure Messaging or mail by January 18, 2023” with upcoming notice redesign
RECOMMENDATION 2789
RECOMMENDATION TEXT:
I don’t agree with some or all of the changes Please return this form and include a statement signed by you that explains what you don’t agree with. Also include copies of any documents, such as corrected W-2, 1099, or missing forms that support your statement. Note: You can fax this Response form, documentation and/or signed statement explaining the items you don’t agree with to 1-877- XXX-XXXX I do not agree with some or all of the changes: Please return this Response Form and include your signed statement, explaining the items with which you disagree. Also include copies of any documents, such as corrected W-2s, 1099s, or missing forms to support your signed statement. If necessary, you may also submit an amended return – Form 1040X. If you submit an amended return – 1040X, please write CP2000 on the top center of the 1040X. To mail this information, please use the address at the top left corner of this Notice of Proposed Changes. To fax this information, please use the fax number at the top right corner of this Notice of Proposed Changes. You can also upload this Response Form, your documentation, your signed statement and, if necessary, your Amended Return – 1040X – using Secure Messaging. To better explain the option if taxpayers do not agree with some or all of the changes
IRS Action:
Disagree, the information of what is needed if they disagree has already been provided earlier in the notice.
RECOMMENDATION 2790
RECOMMENDATION TEXT:
2. Authorization optional 3. Authorization, Optional: Keep titles capitalized
IRS Action: Not adopted
Disagree, following OTC guidelines
RECOMMENDATION 2791
RECOMMENDATION TEXT:
If you would like to authorize someone, in addition to you, to contact the IRS concerning this notice, please include the person’s information, your signature, and the date. If you would like to authorize someone, in addition to you, to contact the IRS concerning this Notice of Proposed Changes, please include that person’s information, your signature, and the date. Refer to notice as Notice of Proposed Changes
IRS Action: Adopted
Disagree, changing verbiage as part upcoming notice redesign. If you want to authorize someone, in addition to yourself, to contact the IRS only about this CP2000 notice addressing your [XXXX] tax filing, please include the person’s information, your signature, and the date.
RECOMMENDATION 2792
RECOMMENDATION TEXT:
I authorize the person listed above to discuss and provide information to the IRS about this notice. I authorize the person listed above to discuss and provide information to the IRS about this Notice of Proposed Changes. Refer to notice as Notice of Proposed Changes
IRS Action: Adopted
Disagree, changing with upcoming notice redesign. I authorize the person listed above to discuss and provide information to the IRS about this CP2000 notice for my 2023 tax year.
RECOMMENDATION 2793
RECOMMENDATION TEXT:
Payment Payment Voucher It’s a payment voucher and it’s referred to as such in earlier portions of the letter.
IRS Action: Adopted
Disagree, payment voucher is being removed with upcoming notice redesign
RECOMMENDATION 2794
RECOMMENDATION TEXT:
TAXPAYER ONLINE ACCOUNT – Taxpayers can create and access taxpayer online accounts. Please go to irs.gov, select “Sign into your Online Account” to get started. Please add this text to alert taxpayers that they have the option to create their online account. This will help taxpayers remain or become compliant, increase efficiency, reduce frustration. The IRS will also receive less phone calls, less paper, less frustrated taxpayers.
IRS Action: Not adopted
Disagree, Not all taxpayers receive the TDC notice (QR code) so by adding this verbiage to all notices will only increase confusion. AUR is working with OTC to redesign the CP2000 notice and will be removing the TDC QR code and will be directing taxpayers to an online landing page which will provide them with all the ways they can reply to an AUR notice.
RECOMMENDATION 2795
RECOMMENDATION TEXT:
Social Security Number Please redact all but the last four of the taxpayer’s SSN. To prevent ID theft.
IRS Action: Adopted
Disagree, removing all SSN from upcoming notice redesign.
RECOMMENDATION 2796
RECOMMENDATION TEXT:
We’re proposing changes to your 2021 Form 1040 tax return. This is not a bill. We propose changes to your 2021 Form 1040 tax return. This is not a bill. Remove Contractions
IRS Action: Not adopted
Disagree, following OTC guidelines
RECOMMENDATION 2797
RECOMMENDATION TEXT:
Thank you for your response to our previous notice. Based on your response, we’ve determined you owe $0 (including interest), which you will need to pay by May 24, 2023. Thank you for your response to our previous notice. Based on your response, we determined you owe $0 (including interest). This Proposed Amount is due by May 24, 2023. The original text is hard and condescending. The entire CP2000 is a “proposal”. Therefore, we should use consistent words.
IRS Action: Adopted
Disagree, changed with upcoming notice redesign to the following: This isn’t a bill; however, using the information you provided we’ve made changes.
RECOMMENDATION 2798
RECOMMENDATION TEXT:
Payments Payments Made, Claimed or Reported To alert taxpayer that all various forms or payments are included.
IRS Action: Not adopted
The current language relates to the Form 1040. No changes will be made.
RECOMMENDATION 2799
RECOMMENDATION TEXT:
Reminder: This is not a bill. We haven’t charged the proposed amount due. Reminder: This is not a bill. We have not assessed the proposed amount due. Do not pay the Proposed Amount due unless you agree with the IRS proposed changes. Make it clear to taxpayer that this is not a bill. It’s a proposed assessment and taxpayer needs to take action.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2800
RECOMMENDATION TEXT:
If you need more time to respond to this notice, contact us at 1-800-xxx-xxxx Interest will continue to accrue during this period if the information in this notice is correct. If you need more time to respond to this Notice of Proposed Changes, contact us at 1-800-xxx- xxxx.
Interest will continue to accrue, and penalties may apply if, when this matter is resolved, taxes are owed. Need to be more descriptive so that taxpayer knows what they need to do immediately. And that interest and penalties may apply. Fixing grammar and punctuation.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2801
RECOMMENDATION TEXT:
Review this notice and compare our changes to the information on your 2021 tax return. If you agree with the proposed changes Complete, sign, and date the Response form on Page 9 (we require both spouses’ signatures if you filed married filing jointly) and mail it to us along with your payment of $0 so we receive it by May 24, 2023. Do not file an amended return (Form 1040X) if you fully agree with our changes. We’ll make the correction when we receive your signed response. Review this Notice of Proposed Changes and compare our proposed changes to the information you reported on your 2021 tax return. If you agree with the proposed changes: Complete, sign, and date the Response Form on Page 9 of this Notice of Proposed Changes (we require both spouses’ signatures if you filed married filing jointly) Mail the Response Form, to the address in the top left corner of this Notice of Proposed Changes, or Fax the Response Form to the fax number in the top right corner of this Notice of Proposed Changes. We must receive your Response Form and payment by May 24, 2023. Please see page XX of this Notice of Proposed Changes on how to either pay the Proposed Amount in full or enter into an Installment Agreement. Do not file an amended return (Form 1040X) if you fully agree with our changes. We will correct your tax file when we receive your signed Response Form. Must refer to Notice of Proposed Changes throughout. Cannot Interchange Notice of Proposed Changes with notice. Capitalize words in specific documents. Directions where to send or Fax, How to Pay. Gives taxpayers a better understanding of what they need to do if they agree with the Proposed Changes and the deadline.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2802
RECOMMENDATION TEXT:
If you don’t agree with the proposed changes Complete the Response form on Page 9, and send it to us along with a signed statement explaining your disagreement and include any documentation that supports your claim so we receive it by May 24, 2023. If you have allowable costs or expenses related to the unreported income that will change our proposal, it may benefit you to include the applicable form or schedule with your response. It is not necessary to file an amended return (Form 1040X) for 2021 if you don’t agree with our changes. We’ll review your response and make any applicable corrections. However, if you choose to file an amended return, write “CP2000” on top of it and attach it behind your completed Response form. If you do not agree with some or all the proposed changes: Complete the Response Form on Page 9 of this Notice of Proposed Changes, and mail or fax the Response Form, along with your signed statement explaining the items with which you disagree. Include any documentation that supports the items with which you disagree. We must receive your Response and Signed Statement, along with any documentation, by May 24, 2023. If you have allowable costs or expenses related to the unreported income that will change our Proposed Amount Due, you may benefit by including the applicable IRS tax form or schedule with your Response Form and Signed Statement. It is not necessary to file an amended return (Form 1040X) for 2021 if you do not agree with our changes. We will review your response and make any applicable corrections. However, if you choose to file an amended return, write “CP2000” on the top of the amended return and attach it to your completed Response Form. Gives taxpayers a clear understanding of what they need to do if they do not agree with some or all of the proposed changes. How to respond, what to include.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2803
RECOMMENDATION TEXT:
If we don’t hear from you If we do not hear from you Remove contractions. This is a formal letter. Not a letter between friends.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2804
RECOMMENDATION TEXT:
If we don’t receive your response by May 24, 2023, we’ll send you a Statutory Notice of Deficiency followed by a final bill for the proposed amount due. During this time, interest will continue to accrue and penalties may apply. If we do not receive your response by May 24, 2023, we will send you a Statutory Notice of Deficiency, followed by a final bill for the Proposed Amount Due. During this time, interest will continue to accrue and penalties may apply. Explains what the IRS will do. No contractions.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2805
RECOMMENDATION TEXT:
This section tells you specifically what income information the IRS received about you from others (including your employers, banks, mortgage holders, etc.). This information doesn’t match the information you reported on your tax return. This section outlines income, credits and/or possible deductions not included on your 2021 tax return, but that other (including employers or financial institutions, etc.) reported to the IRS. Makes clear that the IRS is using what taxpayer originally reported vs. what third parties reported to the IRS.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2806
RECOMMENDATION TEXT:
Misidentified income If any of the income shown on this notice isn’t yours, send us the name, address, and taxpayer identification number of the person who received the income. To prevent future incorrect reporting to the IRS, notify the payer to adjust their records to show the correct name and taxpayer identification number. Misidentified Income If any of the income shown on this Notice of Proposed Changes is not yours, send us the name, address, and taxpayer identification number of the person who instead received the income. To prevent future incorrect third-party reporting to the IRS, notify the payer, or third party, to adjust their records to show the correct recipient’s name and taxpayer identification number. To make uniform and clearly state the issue. This explains Misidentified Income.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2807
RECOMMENDATION TEXT:
Form W-2 or 1099 not received The income reported on your return doesn’t match the documents we received from your employer or payers. The law requires you to accurately report all income you receive. If your employers don’t send proper information documents or forms (for example, Form W-2, Wage and Tax Statement, Form 1099), you must estimate your income based on your paycheck stubs, bank statements, or other records and include your estimate on your tax return. Form W-2 or 1099 not Received The income reported on your return does not match the documents we received from your employer or third-party payers. The law requires that you accurately report all income received. If your employers do not send proper information documents or forms (for example, For W-2, Wage and Tax Statement, Form 1099), you must estimate your income based on your paycheck stubs, bank statements, or other records and include your estimate on your tax return. To make uniform and clearly state the issue. This explains W-2 or 1099 not Received.
IRS Action: Not adopted
See same response as above.
RECOMMENDATION 2808
RECOMMENDATION TEXT:
Gambling losses You must include gambling winnings as income on your tax return. You can claim gambling losses on Schedule A, Itemized Deductions. The amount of losses you claim can’t be more than the amount of gambling income you reported on your tax return. If you already filed Schedule A and your total itemized deductions exceed the standard deduction amount, we included your gambling losses on Schedule A to reduce your taxable income. If you didn’t file a Schedule A and total itemized deductions now exceed your standard deduction, send us a completed Schedule A to claim those deductions. Gambling Losses Gambling winnings must be reported as income on your tax return. You can claim gambling losses on Schedule A, Itemized Deductions. The amount of gambling losses you claim cannot exceed the amount of gambling income. If you already filed a Schedule A and your total itemized deductions exceed the standard deduction amount, we included your gambling losses on Schedule A to reduce your taxable income. If you did not file a Schedule A and your total itemized deductions now exceed your standard deduction, please amend your return or send us a completed Schedule A to claim these gambling deductions. See detail paragraphs. To make uniform and clearly state the issue.
IRS Action: Adopted
Disagree will be changing as part of the notice redesign – You must include gambling winnings as income on your tax return. You can claim gambling losses on Schedule A, Itemized Deductions. The amount of losses you claim can’t be more than the amount of gambling income you reported on your tax return. If you already filed Schedule A, and your total itemized deductions exceed the standard deduction amount, we included your gambling losses on Schedule A to reduce your taxable income. If you didn’t file a Schedule A and total itemized deductions now exceed your standard deduction, send a completed Schedule A to claim those deductions.
RECOMMENDATION 2809
RECOMMENDATION TEXT:
Negative taxable income You had a zero or negative taxable income amount on your original or amended return. To ensure proper credit for deductions, this notice reflects the actual amount of your taxable income in the “Shown on return” column of the “Changes to your tax return” section. Negative Taxable Income You reported zero or negative taxable income on your original or amended return. To ensure proper credit for deductions, this Notice of Proposed Changes reflects the actual amount of your taxable income in the “Shown on return” column of the “Changes to your tax return” section. To make uniform and clearly state the issue.
IRS Action: Not adopted
Same response as above
RECOMMENDATION 2810
RECOMMENDATION TEXT:
Earned Income Credit Changes to your adjusted gross income (AGI) will affect your allowable Earned Income Credit. The Earned Income Credit is based on your earned income and AGI, both of which must be less than:
•$21,430 with no qualifying child ($27,380 for married filing jointly),
•$42,158 with one qualifying child ($48,108 for married filing jointly) or
•$47,915 with two qualifying children ($53,865 for married filing jointly) or
•$51,464 with more than two qualifying children ($57,414 for married filing jointly).
Earned Income Credit Changes to your adjusted gross income (AGI) affects the amount of Earned Income Credit you can claim. The Earned Income Credit is based on your earned income and AGI. To claim the Earned Income Credit, both your earned income and your AGI must be less than: $21,430 with no qualifying child ($27,380 for married filing jointly); $42,158 with one qualifying child ($48,108 for married filing jointly); $47,915 with two qualifying children ($53,865 for married filing jointly); or $51,464 with more than two qualifying children ($57,414 for married filing jointly). To make uniform and clearly state the issue. This explains Earned Income Credit.
IRS Action: Not adopted
Same response as above
RECOMMENDATION 2811
RECOMMENDATION TEXT:
Next steps Next Steps Headings Capitalized and Bold
IRS Action: Not adopted
Same as above
RECOMMENDATION 2812
RECOMMENDATION TEXT:
If you agree with our proposed changes, send us your signed Response form so we receive it by the due date of this notice. After you receive the billing notice which identifies we have adjusted your account, you can use the following online payment options: Visit www.irs.gov/payments for information about online payment options including:- Pre-assessed installments and payment agreements Payroll deductions Credit card payments Direct debit payments Applicable fees To apply for an installment agreement plan by mail, send in your signed Response form AND a completed Form 9465, Installment Agreement Request. If you agree with all of our proposed changes, mail us your signed Response Form so we receive it by the due date of this Notice of Proposed Changes. We will then mail you a Billing Notice, confirming we adjusted your account. Once you receive the Billing Notice, you can use the following payment options: To pay in full, or to make payments where an installment agreement is not required, visit www.irs. gov/payments for information about online payment options including: Pre-assessed installments and payment agreements Payroll deductions Credit card payments Direct debit payments Applicable Fees To apply for an installment agreement plan, mail or fax your signed Response Form AND a completed form 9465, Installment Agreement Request. Clearly explains the taxpayer’s next steps and that taxpayer has a choice to pay in full or set up an installment agreement.
IRS Action: Not adopted
Same response as above
RECOMMENDATION 2813
RECOMMENDATION TEXT:
If the same error has occurred in another tax year, file a Form 1040X for that tax year. If the same error occurred in another tax year, file a Form 1040X for that tax year. Remove passive voice
IRS Action: Not adopted
Same as above
RECOMMENDATION 2814
RECOMMENDATION TEXT:
If you do not agree with some or all of our proposed changes, mail or fax your signed Response Form so we receive it by the due date of this Notice of Proposed Changes, along with your signed statement or amended return – 1040X. Explain the items with which you disagree and include any documentation to support your disagreement. We must receive your Response Form, and any additional documentation, Not agreeing with some or all the changes should also be included in Next Steps. As it reads now, the IRS only believes we agree with all the proposed changes.
IRS Action: Not adopted
Same as above
RECOMMENDATION 2815
RECOMMENDATION TEXT:
Interest charges Interest Charges Headings Capitalized and Bold
IRS Action: Not adopted
Same as above
RECOMMENDATION 2816
RECOMMENDATION TEXT:
We are required by law to charge interest when you do not pay your liability on time. Generally, we calculate interest from the due date of your return (regardless of extensions) until you pay the amount you owe in full, including accrued interest and any penalty charges. Interest on some penalties accrues from the date we notify you of the penalty until it is paid in full. Interest on other penalties, such as failure to file a tax return, starts from the due date or extended due date of the return. Interest rates are variable and may change quarterly. (Internal Revenue Code Section 6601) Interest is calculated to 30 days from the date of the notice for domestic addresses and 60 days from the date of the notice for foreign and APO/FPO/DPO addresses. Interest will continue to accrue until you pay the amount you owe in full.
We are required by law to charge interest when you do not pay your liability on time. Generally, we calculate interest from the due date of your return (regardless of extensions) until you pay the amount you owe in full, including accrued interest and any penalties.
Interest on some penalties may accrue from the date we notify you of the penalty until the penalty is paid in full. Interest on other penalties, such as failure to file a tax return, starts from the due date, or extended due date, of the return.
Interest rates are variable and may change quarterly. (Internal Revenue Code Section 6601). Interest is calculated to 30 days from the date of the notice for domestic addresses and 60 days from the date of the notice for foreign and APO/FPO/ DPO addresses. Interest continues to accrue until you pay in full the amount you owe. Betters explains interest and penalties.
IRS Action: Not adopted
Same response as above
RECOMMENDATION 2817
RECOMMENDATION TEXT:
The table below shows the rates used to calculate the interest on your unpaid amount from the date the tax return was due until the tax is paid in full. For a detailed calculation of your interest, call 1-800-xxx-xxxx. The table below shows the rates we use to calculate interest on your unpaid amount, from the date the tax return was due, until you pay the tax in full. For a detailed calculation of your interest, call 1-800- xxx-xxxx. Clarifies that interest is accruing from the date the return was due, until paid in full. Removes passive voice.
IRS Action: Adopted
Removed from notice with upcoming redesign
RECOMMENDATION 2818
RECOMMENDATION TEXT:
Additional information Additional Information Headings Capitalized and Bold
IRS Action: Not adopted
Same as above
RECOMMENDATION 2819
RECOMMENDATION TEXT:
For information about your rights, see the enclosed Publication 1, Your Rights as a Taxpayer. Visit www.irs.gov/cp2000 for more information about this notice, frequently asked questions, and to review the following:-Publication 5181, Tax Return Reviews by Mail CP2000, Letter 2030, CP2501, Letter 2531, for more information about filing an Appeal. For tax forms, instructions, and publications, visit www. irs.gov/forms-pubs or call800- TAX-FORM (800-829-3676). This isn’t an audit; your return may be subject to an examination. Keep a copy of this notice for your records. The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. To help you understand what these rights mean to you and how they apply, visit www.irs.gov. For information about your rights, see the enclosed Publication 1, Your Rights as a Taxpayer. Visit www.irs.gov/cp2000 for more information about this Notice of Proposed Changes, frequently asked questions about this Notice of Proposed Changes, and to review the following: Publication 5181, Tax Returns Reviews by Mail VP2000, Letter 2030, CP2501, Letter 2531, for more information about filing an Appeal. For tax forms, Instructions, and publications, visit www.irs. gov/forms-pubs or call 800- TAX-FORM (800-829-3676). Although this Notice of Proposed Changes is not an audit, the IRS may subject your return to an examination. Keep a copy of this Notice of Proposed Changes for your records. The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when interacting with the IRS. To help understand your taxpayer rights, visit www.irs.gov/ taxpayer-bill-of-rights. Better Clarifies Additional Information.
IRS Action: Not adopted
Same as above
RECOMMENDATION 2820
RECOMMENDATION TEXT:
We can’t allow your withholding credits on joint- owned income without more information about the allocation. Send the names and taxpayer identification numbers of the other joint owners. State the income and tax withheld for each joint owner separately. We cannot allow your withholding credits on joint-owned income without additional information. Please send a statement, including the names and taxpayer identification numbers of the other joint owners; and then allocate the income and withholding credits to and between the joint taxpayers. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Changing with upcoming notice redesign – We can’t allow your withholding credits on jointly owned income without more information about how they were distributed. Send the names and taxpayer identification numbers of the other joint owners. Provide a list of the income and tax withheld for each joint owner separately.
RECOMMENDATION 2821
RECOMMENDATION TEXT:
You were charged a penalty when you withdrew your savings early. You can claim this as an adjustment on your return to reduce your adjusted gross income (AGI). A penalty for early withdraw of your savings applies. On your tax return, you can claim the early withdraw of savings penalty as an adjustment to your income, thereby reducing your adjusted gross income (AGI). To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant
IRS Action: Not adopted
Disagree – The new paragraph is too wordy and per IRSAC feedback, taxpayers can only understand/read at a 4th grade level
RECOMMENDATION 2822
RECOMMENDATION TEXT:
Based on the proposed changes, the standard deduction amount is now larger than your total itemized deductions on line 17 of Schedule A, Itemized Deductions. We used the standard deduction to recalculate the proposed taxable income amount in the “Changes to your tax return” section of this notice. Based on the IRS proposed changes found in this Notice of Proposed Changes, your standard deduction amount is now larger than the total itemized deductions you originally reported on line 17 of Schedule A, Itemized Deductions. The IRS replaced your itemized deduction with your standard deduction. We recalculated your taxable income – See the “Changes to your tax return” section of this Notice of Proposed Changes. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree paragraph will be updated as part of the notice redesign as follows – The standard deduction amount is now larger than your total itemized deductions . We used the standard deduction to recalculate the proposed taxable income amount in this notice.
RECOMMENDATION 2823
RECOMMENDATION TEXT:
Medical and dental expense deductions are reduced by 7.5 percent of your adjusted gross income. Since we recalculated your adjusted gross income, we also recalculated your medical and dental expense deduction. Medical and dental expense deductions are reduced by
7.5 percent of your adjusted gross income. Since the IRS recalculated your adjusted gross income, the IRS also recalculated your medical and dental expense deduction. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree paragraph will be updated as part of the notice redesign as follows – Medical and dental expense deductions are reduced by 7.5% of your adjusted gross income (AGI). Since we recalculated your AGI, we also recalculated your medical and dental expense deduction.
RECOMMENDATION 2824
RECOMMENDATION TEXT:
Changes to your adjusted gross income (AGI) will affect your allowable Earned Income Credit. The Earned Income Credit is based on your earned income and AGI, both of which must be less than: $21,430 with no qualifying child ($27,380 for married filing jointly), $42,158 with one qualifying child ($48,108 for married filing jointly) or $47,915 with two qualifying children ($53,865 for married filing jointly) or $51,464 with more than two qualifying children ($57,414 for married filing jointly). Changes to your adjusted gross income (AGI) affects the amount of Earned Income Credit you can claim. The Earned Income Credit is based on your earned income and AGI. To claim the Earned Income Credit, both your earned income and your AGI must be less than: $21,430 with no qualifying child ($27,380 for married filing jointly); $42,158 with one qualifying child ($48,108 for married filing jointly); $47,915 with two qualifying children ($53,865 for married filing jointly); or $51,464 with more than two qualifying children ($57,414 for married filing jointly). To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree paragraph will be updated as part of the notice redesign as follows – Changes to your adjusted gross income (AGI) will impact your allowable Earned Income Credit. The Earned Income Credit is based on your earned income and AGI. See instructions for Form 1040 to locate the specific amount for your filing status.
RECOMMENDATION 2825
RECOMMENDATION TEXT:
The capital gains (for example, from a sale of stock) shown in this notice are treated as ordinary income because we need additional information regarding gains or losses, or both. To respond to this notice, complete and send us an amended Schedule D, Capital Gains and Losses, with the required information. If you have unused capital losses on your Schedule D and want to apply these losses to your capital gains, you must acknowledge you’ll correct the affected tax years. Complete and send Form 1040-X, Amended U.S. Individual Income Tax Return, to correct other affected tax returns you’ve already filed. If you haven’t filed the tax return for the affected year, send us a signed statement you’ll correct your records. If your capital losses exceed capital gains, the excess losses are only allowed to the extent of the lesser of $3,000 ($1,500 if married filing separately), or the excess loss amount. The IRS classified capital gains (for example, from a sale of stock) identified in this Notice of Proposed Changes as short-term gains, or “ordinary income”. If, instead, the capital gains identified in this Notice of Proposed Changes are long-term capital gains, possibly subject to a different, or lower, tax rate, the IRS needs additional information. Please send the IRS the purchase dates and sale dates of each capital asset identified in this Notice of Proposed Changes. To respond to this Notice of Proposed Changes, complete and send us an amended Schedule D, Capital Gains and Losses, with this information. If you have unused capital losses on your Schedule D “capital loss carryovers” and you want to offset or apply these losses to your current or prior years capital gains, you must amend or correct the affected tax years. Please complete and send Form 1040-X, Amended U.S. Individual Income Tax Return, to correct other affected tax returns you already filed. If you have not filed the tax return, or the amended tax return, for the affected year or years, send the IRS a signed statement that you will amend and/or correct your returns. If your capital losses exceed capital gains, the excess capital losses are only allowed to the extent of the lesser of $3,000 ($1,500 if married filing separately), or the excess loss amount. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree paragraph will be updated as part of the notice redesign as follows: The capital gains (for example, from a sale of stock) shown in this notice are treated as ordinary income because we need additional information regarding gains or losses, or both. To respond to this notice, send a complete amended Schedule D, Capital Gains and Losses. If you have unused capital losses on your Schedule D and want to apply these losses to capital gains, you must acknowledge you’ll correct the affected tax years. Send a completed Form 1040-X, Amended U.S. Individual Income Tax Return, to correct other affected tax returns you’ve already filed. If you haven’t filed the tax return for the affected year, return to us a statement informing us you’ll correct your records. If your capital losses exceed capital gains, the excess losses are only allowed to the extent of the lesser of $3,000 ($1,500 if married filing separately), or the excess loss amount.
RECOMMENDATION 2826
RECOMMENDATION TEXT:
Based on the proposed changes, you no longer qualify for the optional method. You can only use the optional method if your net farm and nonfarm profits are less than $6,367. Based on the IRS proposed changes, you no longer qualify for the optional method. You can only use the optional method if your net farm and nonfarm profits are less than $6,367. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree paragraph will be updated as part of the notice redesign as follows – Due to the proposed changes on this notice, you no longer qualify for the optional method. See Form 1040, Schedule C instructions for the tolerance amount.
RECOMMENDATION 2827
RECOMMENDATION TEXT:
Generally, earnings from Qualified Tuition Programs (QTPs) or Coverdell Education Savings Accounts (CESAs), are tax- exempt if: Used to pay expenses for qualified education. Transferred between trustees. Rolled over to another qualified education program within 60 days.
If the distributions aren’t used for those purposes, you must include them in your income. Most taxable earnings are also subject to an additional 10 percent tax. You can find more information in Publication 970, Tax Benefits for Education. If you believe all or part of your QTP or CESA earnings qualify for tax-exemption, send us a signed statement showing the qualified expenses or rollover documentation, or the computation you used to determine the taxable portion. Generally, earnings from Qualified Tuition Programs (QTPs) or Coverdell Education Savings Accounts (CESAs), are tax- exempt if the earnings are: Used to pay expenses for qualified education. Transferred between trustees; or Rolled over to another qualified education program within 60 days. If the distributions were not used for those purposes, you must include the Qualified Tuition Programs (QTPs) earnings or the Coverdell Education Savings Accounts (CESAs) earnings in your income. If the Qualified Tuition Programs (QTPs) earnings or the Coverdell Education Savings Accounts (CESAs) earnings are taxable, then these Qualified Tuition Programs (QTPs) earnings or the Coverdell Education Savings Accounts (CESAs) earnings are also subject to an additional 10 percent tax. You can find more information in Publication 970, Tax Benefits for Education. If you believe all or part of your QTP or CESA earnings are not included in your income because your QTP or CESA earnings are tax-exempt, send us a signed statement showing the qualified expenses or rollover documentation, or the computation you used to determine the taxable portion of the QTP or CESA earnings. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree paragraph will be updated as part of the notice redesign as follows – Generally, earnings from Qualified Tuition Programs (QTPs) or Coverdell Education Savings Accounts (CESAs), are tax-exempt if you: Use them to pay expenses for qualified education. Transfer them between trustees. Rolled over to another qualified education program within 60 days. If the distributions weren’t used for those purposes listed above, you must include them in your income. Most taxable earnings are also subject to an additional 10% tax. You can find more information in Publication 970, Tax Benefits for Education. If you believe all or part of your QTP or CESA earnings qualify for tax-exemption, return to us a statement showing the qualified expenses, rollover documentation, or the computation you used to determine the taxable portion.
RECOMMENDATION 2828
RECOMMENDATION TEXT:
We assess a 5 percent monthly penalty for filing your return late and a 0.5 percent monthly penalty for not paying the tax you owe by the due date. When both penalties apply for the same month, the amount of the penalty for filing late for that month is reduced by the amount of the penalty for paying late for that month. The penalties may not apply where you’ve shown the failure is due to reasonable cause and not willful neglect. The penalty for filing late is calculated based on the tax required to be shown on the return that you didn’t pay by the original return due date, without regard to extensions. The penalty for paying late is calculated based on the net unpaid tax at the beginning of each penalty month following the payment due date for that tax. We charge the penalties for each month or part of a month the return or payment is late; however, neither penalty can be more than 25 percent in total. Income tax returns are subject to a minimum late filing penalty when filed more than 60 days after the return due date, including extensions. The minimum penalty is the LESSER or two amounts – 100 percent of the tax required to be shown on the return that you didn’t pay on time, or a specific dollar amount that is adjusted annually for inflation. The specific dollar amounts are: $435 for returns due on or after 01/01/2020, $210 for returns due between 01/01/2018 and 12/31/2019, $205 for returns due between 01/01/2016 and 12/31/2017, $135 for returns due between 01/01/2009 and 12/31/2015, $100 for returns due before 01/01/2009. We assessed a 5 percent monthly penalty for filing your return late and a 0.5 percent monthly penalty for not paying the tax you owe by the due date. When both penalties apply for the same month, the amount of the late filing penalty for that month is reduced by the amount of the late payment penalty for that month. The penalties may not apply if you successfully show that the failure to timely file or the failure to timely pay is due to reasonable cause and not willful neglect. To request waiver of these penalties, you must send the IRS a statement documenting that your failure to timely file or failure to timely pay was due to reasonable cause and not willful neglect.
The late filing penalty is calculated based on the tax that should have been reported on your return and that you did not pay by the return’s original return due date, without regard to extensions. The late payment penalty is calculated based on the net unpaid tax from the beginning of each month following the tax payment due date.
We charge penalties for each month or part of a month your return or payment is late; however, neither penalty can be more than 25 percent in total.
Income tax returns are subject to a minimum late filing penalty when filed more than 60 days after the return due date, including extensions. The minimum penalty is the LESSER or two amounts – 100 percent of the tax required to be shown on the return that you did not pay on time, or
To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree, paragraph will be updated with upcoming notice redesign and is set language by OTC. 6651We assess a 5 percent monthly penalty for filing your return late and a 0.5 percent monthly penalty for not paying the tax you owe by the due date. When both penalties apply for the same month, the amount of the penalty for filing late for that month is reduced by the amount of the penalty for paying late for that month. The penalties may not apply where you’ve shown the failure is due to reasonable cause and not willful neglect.
The penalty for filing late is calculated based on the tax required to be shown on the return that you didn’t pay by the original return due date, without regard to extensions. The penalty for paying late is calculated based on the net unpaid tax at the beginning of each penalty month following the payment due date for that tax. We charge the penalties for each month or part of a month the return or payment is late; however, neither penalty can be more than 25 percent in total. Income tax returns are subject to a minimum late filing penalty when filed more than 60 days after the return due date, including extensions. The minimum penalty is the LESSER or two amounts – 100 percent of the tax required to be shown on the return that you didn’t pay on time, or a specific dollar amount that is adjusted annually for inflation. The specific dollar amounts are: $485 for returns due on or after 01/01/2024, $450 for returns due between 01/01/2023 and 12/31/2023, $435 for returns due between 01/01/2020 and 12/31/2022, $210 for returns due between 01/01/2018 and 12/31/2019, $205 for returns due between 01/01/2016 and 12/31/2017, $135 for returns due between 01/01/2009 and 12/31/2015, $100 for returns due on or before 12/31/2008.
RECOMMENDATION 2829
RECOMMENDATION TEXT:
a specific dollar amount that is adjusted annually for inflation. The specific dollar amounts are: $435 for returns due on or after 01/01/2020. $210 for returns due between 01/01/2018 and 12/31/2019. $205 for returns due between 01/01/2016 and 12/31/2017. $135 for returns due between 01/01/2009 and 12/31/2015. $100 for returns due before 01/01/2009.
IRS Action: Adopted
See response above.
RECOMMENDATION 2830
RECOMMENDATION TEXT:
We figured self-employment (SE) tax on other income you reported on Schedule 1, Additional Income and Adjustments to Income. SE income generally includes nonemployee compensation, merchant card payments, third-party network payments, and other income from part- time or full-time work. If you believe the amount on Schedule 1, line 8z isn’t subject to SE tax, send us a signed statement explaining why and include supporting documentation. We calculated and imposed self-employment (SE) tax on other income you reported on Schedule 1, Additional Income and Adjustments to Income. SE income generally includes nonemployee compensation, merchant card payments, third-party network payments, and other income from part- time or full-time work. If you believe the amount on Schedule 1, line 8z is not subject to SE tax, file an amended return, or send us a signed statement explaining why the other income identified in this Notice of Proposed Changes is not subject to self-employment tax. Please include all supporting documentation. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated as part of the notice redesign – We figured self-employment (SE) tax on other income you reported on Schedule 1, Additional Income and Adjustments to Income. SE income generally includes nonemployee compensation, merchant card payments, third party network payments, and other income from part-time or full-time work. If you believe the amount on Schedule 1, line 8 isn’t subject to SE tax, send us a statement explaining why and include supporting documentation.
RECOMMENDATION 2831
RECOMMENDATION TEXT:
You must include gambling winnings as income on your tax return. You can claim gambling losses on Schedule A, Itemized Deductions. The amount of losses you claim can’t be more than the amount of gambling income you reported on your tax return. If you already filed Schedule A and your total itemized deductions exceed the standard deduction amount, we included your gambling losses on Schedule A to reduce your taxable income. If you didn’t file a Schedule A and total itemized deductions now exceed your standard deduction, send us a completed Schedule A to claim those deductions. Gambling winnings must be reported as income on your tax return. You can claim gambling losses on Schedule A, Itemized Deductions. The amount of gambling losses you claim cannot exceed the amount of gambling income you reported on your tax return. If you already filed a Schedule A and your total itemized deductions exceed the standard deduction amount, we included your gambling losses on Schedule A to reduce your taxable income. If you did not file a Schedule A and your total itemized deductions now exceed your standard deduction, please amend your return or send us a completed Schedule A to claim these gambling deductions. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updating as part of the notice redesign – You must include gambling winnings as income on your tax return. You can claim gambling losses on Schedule A, Itemized Deductions. The amount of losses you claim can’t be more than the amount of gambling income you reported on your tax return. If you already filed Schedule A, and your total itemized deductions exceed the standard deduction amount, we included your gambling losses on Schedule A to reduce your taxable income. If you didn’t file a Schedule A and total itemized deductions now exceed your standard deduction, send a completed Schedule A to claim those deductions.
RECOMMENDATION 2832
RECOMMENDATION TEXT:
We assess a 0.5 percent monthly penalty for not paying the tax you owe by the due date. The penalty applies even if you filed the return on time. The due date for payment of the tax shown on the return generally is the return due date, without regard to extensions. You must pay increases in tax within 21 days of the date our notice demanding payment (10 business days if the amount in the notice is $100,000 or more).
If we issue a Notice of Intent to Levy and you don’t pay the balance due within 10 days of the date of the notice, the penalty for paying late increases to 1 percent per month.
For individuals who filed on time, the penalty decreases to
0.25 percent per month while an approved installment agreement with the IRS is in effect for payment of thetax. After your account has been assessed, you may receive an additional bill for the Failure to Pay penalty (Internal Revenue Code Section 6651 (a)(2)). We assess a 0.5 percent monthly late payment penalty for not paying the tax you owe by the due date. The late payment penalty applies even if you filed the return on time. The tax payment due date is generally the return due date, without regard to extensions. You must pay increases in tax within 21 days of the date of any IRS notice demanding payment (10 business days if the amount in the notice is $100,000 or more). If we issue a Notice of Intent to Levy and you do not pay the balance due within 10 days of the date of the IRS notice, the late payment penalty increases to 1percent per month. For individuals who filed on time, the late payment penalty decreases to 0.25 percent per month while an IRS approved installment agreement is in effect. After the IRS assesses additional tax, you still may receive an additional bill for the Failure to Pay Penalty (Internal Revenue Code Section 6651 (a)(2)). To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, language is set by OTC to be standard for use by all BODs.
RECOMMENDATION 2833
RECOMMENDATION TEXT:
We adjusted your IRA deduction because you were under the age of 50 at the end of the year and the deduction amount you claimed exceeded the lesser of: $6,000 or your earned income for filing status single, married filing separately or head of household. $12,000 or your earned income for filing status married filing jointly, even if only one spouse had earned income. Or you were 50 or older at the end of the year and the deduction amount you claimed exceeded the lesser of: $7,000 or your earned income for filing status single, married filing separately or head of household. $14,000 or your earned income for filing status married filing jointly if both spouses are 50 or older. $13,000 or your earned income for filing status married filing jointly if only one spouse is 50 or older. If you or your spouse were covered by a retirement plan through your employer, the deduction could be further limited. For more information, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). We only allow an IRA deduction if you, (or your spouse, if married filing jointly) have earned income. We limit the deduction to the lesser amount of either your IRA contribution or the amount of your earned income. We adjusted your IRA deduction because you were under the age of 50 at the end of the year for which you made an IRA contribution and the deduction amount you claimed exceeded the lesser of: $6,000 or your earned income for filing status single, married filing separately or head of household; or $12,000 or your earned income for filing status married filing jointly, even if only one spouse had earned income.
Or you were 50 or older at the end of the year that you made the IRA contribution and the deduction amount you claimed exceeded the lesser of: $7,000 or your earned income for filing status single, married filing separately or head of household. $14,000 or your earned income for filing status married filing jointly if both spouses are 50 or older; or $13,000 or your earned income for filing status married filing jointly if only one spouse is 50 or older. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updating as part of the notice redesign – We adjusted your IRA deduction because you were under the age of 50 at the end of the year and the deduction amount claimed exceeded the tolerance amount. Or you were 50 or older at the end of the year and the deduction amount you claimed exceeded the tolerance amount. If you or your spouse were covered by a retirement plan through your employer, the deduction could be further limited. We only allow an IRA deduction if you (or your spouse if married filing jointly) have earned income. We limit the deduction to the lesser amount of either your IRA contribution or the amount of your earned income. For more information, See Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
RECOMMENDATION 2834
RECOMMENDATION TEXT:
Your IRA contribution deduction may be further limited. For example, If you or your spouse were covered by an employer retirement plan; or, you did not have earned income, or you did not have enough earned income, to claim the IRA contribution deduction. The IRS limits the IRA contribution deduction to the lesser amount of either your IRA contribution or the amount of your earned income (or your spouse’s earned income, if married filing jointly). For more information, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
IRS Action: Not adopted
Non-adopt
RECOMMENDATION 2835
RECOMMENDATION TEXT:
We limited your tax return credit for Qualified Retirement Savings Contributions, Form 8880, because we either changed your retirement distribution or your IRA deduction. The credit is limited because your new modified adjusted gross income (MAGI) is between: $19,750 – $33,000 for filing status single, married filing separately or qualifying widow(er). $29,625 – $49,500 for filing status head of household. $39,500 – $66,000 for filing status married filing jointly. The credit is eliminated when MAGI exceeds the upper limit. For more information, please see the instructions for Form 8880, Credit for Qualified Retirement Savings Contributions. We limited your Qualified Retirement Savings Contributions tax credit, Form 8880, because we either changed your retirement distribution income or your IRA contribution deduction. The Qualified Retirement Savings Contribution tax credit is limited because your new modified adjusted gross income (MAGI) is between: $19,750 – $33,000 for filing status single, married filing separately or qualifying widow(er); $29,625 – $49,500 for filing status head of household; or $39,500 – $66,000 for filing status married filing jointly. The Qualified Retirement Savings Contribution tax credit is eliminated when MAGI exceeds the upper limit of MAGI for your filing status. For more information, please see the instructions for Form 8880, Credit for Qualified Retirement Savings Contributions. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated as part of the notice redesign – We limited the credit on your Form 8880, Credit for Qualified Retirement Savings Contributions, because we either changed your retirement distribution or your IRA deduction. For more information, please see the instructions for Form 8880.
RECOMMENDATION 2836
RECOMMENDATION TEXT:
We’re proposing to increase your income for unemployment compensation reported to us by the payer shown in this notice. Unemployment compensation benefits are fully taxable. Payers report unemployment compensation on Form 1099- G, Certain Government Payments. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits, and we’ll review our proposal. We are proposing an increase to your income for unemployment compensation reported by the third-party payer shown in this Notice of Proposed Changes. Unemployment compensation benefits are fully taxable. Unemployment Compensation Payers report unemployment compensation on Form 1099-G, Certain Government Payments. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree, will be updated as part of redesign – We’re proposing to increase your income for unemployment compensation reported to us by the payer shown in this notice. Unemployment compensation benefits are fully taxable. Payers report unemployment compensation on Form 1099-G, Certain Government Payments. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits and we’ll reconsider our proposal to adjust your income.
RECOMMENDATION 2837
RECOMMENDATION TEXT:
If you understate your tax liability and the understatement is more than the greater of 10 percent of your correct tax liability or $5,000, an accuracy-related penalty generally applies for the substantial understatement of tax. The penalty is 20 percent of the portion of the underpayment of tax attributable to the substantial understatement of income tax. We may reduce or eliminate the penalty if you send a signed statement with one of the following: Facts that support your treatment of the understated income and the authority for your position, such as the Internal Revenue Code, Treasury Regulations, Revenue Rulings, Revenue Procedures, etc. or An explanation showing you clearly disclosed the item, such as by attaching Form 8275, Disclosure Statement, or Form 8275-R, Regulation Disclosure Statement and there is a reasonable basis for your position. If you understate your tax liability and your tax liability understatement is more than the greater of 10 percent of your correct tax liability or $5,000, the IRS will impose an accuracy- related penalty for the substantial understatement of tax. The penalty is 20 percent of the portion of the underpayment of tax attributable to the substantial understatement of income tax. We may reduce or eliminate the substantial understatement of tax penalty if you send a signed statement with one of the following: Facts that support your treatment of the understated income and the authority for your position, such as the Internal Revenue Code, Treasury Regulations, Revenue Rulings, Revenue Procedures, etc; or An explanation showing that on your originally filed tax return that you clearly disclosed the item, such as by attaching Form 8275, Disclosure Statement, or Form 8275-R, Regulation Disclosure Statement and you have demonstrated a reasonable basis for your position. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant
IRS Action: Adopted
Disagree will be updating as part of the redesign – If you understate your tax liability and it’s more than the greater of 10% of your correct tax liability or $5,000, an accuracy-related penalty generally applies for the substantial understatement of tax. The penalty is 20% of the portion of the underpayment of tax attributable to a substantial understatement of income tax. We may reduce or eliminate the penalty if you provide a statement with one of the following: Facts to support your treatment of the understated income and the authority for your decision, such as the Internal Revenue Code, Treasury Regulations, Revenue Rulings, Revenue Procedures, etc. An explanation showing you clearly disclosed the item, such as by attaching Form 8275, Disclosure Statement, or Form 8275R, Regulation Disclosure Statement, and there is a reasonable basis for your position.
RECOMMENDATION 2838
RECOMMENDATION TEXT:
The deduction for IRA contributions is dependent upon your filing status, coverage by an employer retirement plan or through self-employment, and your modified adjusted gross income (MAGI). For the tax year in question, if you were covered by a retirement plan, the deduction for IRA contributions is limited when your MAGI is between the amounts listed below, and eliminated when it exceeds the upper limit of: $66,000 and $76,000 for filing status single, head of household or married filing separately – if you lived apart from your spouse for the entire year. Less than $10,000 for filing status married filing separately – if you lived with your spouse at any time during the year. $105,000 and $125,000 for filing status married filing jointly or qualifying widow (er). The IRA contribution deduction is dependent upon your filing status; your coverage by an employer retirement plan or through self-employment earnings; and your modified adjusted gross income (MAGI). For the tax year in question, if you were covered by an employer retirement plan or a self-employment retirement plan, the IRA contribution deduction is limited when your MAGI is between the amounts listed below, and eliminated when it exceeds the upper limit of: $66,000 and $76,000 for filing status single, head of household or married filing separately – if you lived apart from your spouse for the entire year; Less than $10,000 for filing status married filing separately. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant. IRS to add correct limits based on CP2000 year at issue.
IRS Action: Not adopted
Disagree will be updated as part of notice redesign – The deduction for IRA contributions is dependent upon your filing status, coverage by an employer retirement plan or through self-employment, and your modified adjusted gross income (MAGI). See instruction for Form 8606, Nondeductible IRAs on irs.gov, for contribution limitation amounts. If you weren’t covered by a retirement plan but your spouse is covered, the deduction for IRA contributions may be limited. See instructions for Form 8606 on irs.gov for limitation amounts. To avoid contact about this issue on future tax returns, complete and attach Form 8606 to your tax returns. Keep a copy for your records.
RECOMMENDATION 2839
RECOMMENDATION TEXT:
If you weren’t covered by a retirement plan but your spouse is covered, the deduction for IRA contributions is limited when your MAGI is between the amounts listed below and eliminated when it exceeds the upper limit of: Less than $10,000 for filing status married filing separately if you lived with your spouse at any time during the year. $198,000 and $208,000 for filing status married filing jointly with a spouse who is covered by a retirement plan. To avoid contact about this issue on future tax returns, complete and attach Form 8606, Nondeductible IRAs, to your tax returns. Keep a copy for your records. if you lived with your spouse at any time during the year; or $105,000 and $125,000 for filing status married filing jointly or qualifying widow(er). If you were not covered by an employer retirement plan or a self-employment retirement plan, but your spouse is covered by an employer retirement plan or a self-employment retirement plan, the IRA contribution deduction is limited when your MAGI is between the amounts listed below and eliminated when it exceeds the upper limit of: Less than $10,000 for filing status married filing separately – if you lived with your spouse at any time during the year; or $198,000 and $208,000 for filing status married filing jointly with a spouse who is covered by a retirement plan. To avoid contact about this issue on future tax returns, complete and include with your tax return, Form 8606 to report Nondeductible IRA Contributions. Keep a copy of Form 8606 for your records so that you can document potential non- taxable future retirement distributions.
IRS Action: Adopted
adopt
RECOMMENDATION 2840
RECOMMENDATION TEXT:
We couldn’t identify the retirement distribution reported on your return based solely on information your payers reported to us. We need to know if the reported income is a part of a pension or an annuity. If it’s a pension or an annuity, and you’re recovering your after-tax contributions using the Simplified Method or General Rule, send us a signed statement with the date of your first payment, the amount you receive monthly, and the total amount you contributed. If it’s not a pension or annuity, send us a copy of the document showing the gross and non-taxable amount of the distribution you received. If all or part of the distribution was rolled over, send us Form 5498, IRA Contribution Information or similar documentation showing a rollover. We could not identify the retirement distribution reported on your return based solely on information that third-party payers reported to the IRS. We need to know if the reported income is a part of a pension or an annuity. If the retirement distribution is from a pension or an annuity, and you are recovering your after-tax contributions using the Simplified Method or General Rule, send us a signed statement, including the date of your first pension or annuity payment, the amount you receive monthly, and the total amount you contributed to the pension or annuity. If your retirement distribution is not a pension or annuity, please send us a copy of the document showing the gross and non- taxable amount of the retirement distribution you received. If all or part of the retirement distribution was rolled over, send us Form 5498, IRA Contribution Information or similar documentation showing a rollover, including the date of the retirement distribution and date of the retirement distribution roll over. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree, will be updated as part of notice redesign – We couldn’t identify the retirement distribution reported on your return based solely on information your payers reported to us. We need to know if the reported income is a pension, annuity, IRA, lump sum distribution, or employee savings plan. If it’s a pension or an annuity and you’re recovering your after-tax contributions using the Simplified Method or General Rule, submit a statement with the date of your first payment, the amount you receive monthly, and the total amount you contributed. If it’s not a pension or annuity, submit a copy of the document showing the gross and non-taxable amount of the distribution you received. If all or part of the distribution was rolled over, return Form 5498, IRA Contribution Information or similar documentation showing a rollover.
RECOMMENDATION 2841
RECOMMENDATION TEXT:
The circumstances you described allowed us to remove the penalty for failure to properly report income or deductions. No changes No changes
IRS Action: Not adopted
Disagree, will be updated as part of notice redesign – The circumstances you described allowed us to remove the penalty for failure to properly report income or deductions.
RECOMMENDATION 2842
RECOMMENDATION TEXT:
The exclusion you claimed for education savings bond interest has been reduced because your modified adjusted gross income is between: $83,200 and $98,200 for filing status single, or head of household. $124,800 and $154,800 for filing status married filing jointly or qualifying widow (er) with dependent child. The disallowed portion of the exclusion is reflected in the interest income amount shown in the “Changes to your tax return” section of this notice. The exclusion you claimed for education savings bond interest has been reduced because your modified adjusted gross income is between: $83,200 and $98,200 for filing status single, or head of household; or $124,800 and $154,800 for filing status married filing jointly or qualifying widow(er) with dependent child. The disallowed portion of the exclusion is reflected in the interest income amount shown in the “Changes to your tax return” section of this Notice of Proposed Changes. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
The exclusion you claimed for education savings bond interest has been reduced because your modified adjusted gross income is between: $83,200 and $98,200 for filing status single, or head of household. $124,800 and $154,800 for filing status married filing jointly or qualifying widow (er) with dependent child. The disallowed portion of the exclusion is reflected in the interest income amount shown in the “Changes to your tax return” section of this notice. The exclusion you claimed for education savings bond interest has been reduced because your modified adjusted gross income is between: $83,200 and $98,200 for filing status single, or head of household; or $124,800 and $154,800 for filing status married filing jointly or qualifying widow(er) with dependent child. The disallowed portion of the exclusion is reflected in the interest income amount shown in the “Changes to your tax return” section of this Notice of Proposed Changes. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
RECOMMENDATION 2843
RECOMMENDATION TEXT:
To determine if any portion of the scholarship or fellowship payments you received qualify for exclusion from income, tell us whether you were a degree candidate when the scholarship or fellowship was granted. If you were a degree candidate, tell us which amounts were used solely for tuition and course-related expenses. If you weren’t a degree candidate, the full amount of the scholarship or fellowship is taxable. To determine if any portion of the scholarship or fellowship payments you received qualify for exclusion from income, please tell us whether you were a degreed candidate when the scholarship or fellowship was granted. If you were a degreed candidate, tell us which amounts were used solely for tuition and course-related expenses. If you were not a degreed candidate, the full amount of the scholarship or fellowship is taxable. See Publication 970, Tax Benefits for Education, for more information. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree – based on the definition of ‘degreed’, it means you would have already received the title and wouldn’t be attending school and receiving scholarships or fellowship payments.
RECOMMENDATION 2844
RECOMMENDATION TEXT:
The law limits Social Security withholding to $8,853.60 per taxpayer, per year, but more may have been withheld. You must figure the credit separately for each spouse to determine if either one had excess withholding. You can claim a credit for any excess withholding if you had two or more employers. If one employer withheld excess Social Security or Railroad Retirement tax from your pay, you must ask the employer to reimburse you because you can’t claim the excess amount on your federal income tax return. If your employer will not reimburse you, use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess Social Security and Medicare taxes or excess railroad retirement tier 2 tax. See Publication 505, Tax Withholding and Estimated Tax for more details. The law limits Social Security tax withholding to $8,853.60 per taxpayer, per year. However, your employer, or a combination of employers, may have withheld more than $8,853.60 of Social Security tax, per taxpayer, per year. You must allocate the Social Security tax withheld, by spouse, to determine if either spouse had excess Social Security tax withheld. You can claim a credit for any excess Social Security withheld, if you had two or more employers. If one employer withheld excess Social Security or you had excess Railroad Retirement tax withheld from your pay, you must ask the employer to reimburse you. You cannot claim the excess Social Security tax withheld, or the excess Railroad Retirement tax withheld, from one employer on your federal income tax return. If your employer will not reimburse you, use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess Social Security and Medicare tax withheld, or to claim a refund of excess railroad retirement tier 2 tax withheld. See Publication 505, Tax Withholding and Estimated Tax for more details. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree, will be updated with upcoming notice redesign – The law limits Social Security withholding to $9114.00 per taxpayer, per year, but more may have been withheld by your employers. You must figure the credit separately for each spouse to determine if either one had excess withholding. You can claim a credit for any excess withholding if you had 2 or more employers. If one employer withheld excess Social Security or Railroad Retirement tax from your pay, you must ask the employer to reimburse you because you can’t claim the excess amount on your federal income tax return. If your employer will not reimburse you, use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess withholding. See Publication 505, Tax Withholding and Estimated Tax for more details.
RECOMMENDATION 2845
RECOMMENDATION TEXT:
If you believe someone is illegally using your Social Security number, send us a signed statement identifying each item on the notice which is the result of identity theft, as well as a copy of either a police report or completed IRS Form 14039, Identity Theft Affidavit (available at www. identitytheft.gov). You may also want to contact the Federal Trade Commission Identity Theft Hotline (877-438-4338) or visit www. ftc.gov for information about correcting your records. If you believe someone is illegally using your Social Security number, send us a signed statement identifying each item on this Notice of Proposed Changes that you believe is the result of identity theft, as well as a copy of either a police report or completed IRS Form 14039, Identity Theft Affidavit (available at www.identitytheft.gov). You should also contact the Federal Trade Commission Identity Theft Hotline (877-438-4338) or visit www.ftc.gov for information about correcting your records. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated per notice redesign – If you believe someone is illegally using your Social Security number, return to us a statement identifying each item on the notice which is the result of identity theft, as well as a copy of either a police report or completed IRS Form 14039, Identity Theft Affidavit (available at www.irs.gov/form). You may also want to contact the Federal Trade Commission Identity Theft Hotline (877-438-4338) or visit www.ftc.gov for information about correcting your records.
RECOMMENDATION 2846
RECOMMENDATION TEXT:
You received income reported on Form W-2, Wage and Tax Statement, (box 12 with code Z) or Form 1099-MISC, Miscellaneous Income, (box 14), due to participation in a nonqualified deferred compensation plan subject to Internal Revenue Code Section 409A. Because your plan didn’t comply with Internal Revenue Code Section 409A, this income is subject to a premium interest tax and an additional 20 percent tax. This notice includes the additional 20 percent tax. For more information, see Publication 17, Your Federal Income Tax (For Individuals) and Internal Revenue Code Section 409A You received income reported on Form W-2, Wage and Tax Statement, (box 12 with code Z) or Form 1099-MISC, Miscellaneous Income, (box 14), due to participation in a nonqualified deferred compensation plan subject to Internal Revenue Code Section 409A. Because your plan did not comply with Internal Revenue Code Section 409A, this income is subject to a premium interest tax and an additional 20 percent tax. This Notice of Proposed Changes includes the additional 20 percent tax. For more information, see Publication 17, Your Federal Income Tax (For Individuals) and Internal Revenue Code Section 409A. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree will be updated with notice redesign – We’re proposing a change to your investment income and your net investment income tax (NIIT). In general, net investment income includes: excess of interest, dividends, capital gains, gains from trading in financial , instruments or commodities, rental and royalty income, non-qualified annuities, income from passive activities, trading in financial instruments or commodities over allowable deductions. See instructions for Form 1040, Individual Income Tax for more information on limitations.
RECOMMENDATION 2847
RECOMMENDATION TEXT:
We can’t send you a copy of the information you requested because we received it electronically. To get a paper document with the amount reported to us, contact the payers listed below. Alternatively, you could submit Form 4506- T, Request for Copy of Tax Return, to receive data reported on the information returns or file Form 4506, Request for Transcript of Tax Return, to request a paper copy. See www.irs.gov/f4506t or www. irs.gov/f4506 for more information. We cannot send you a copy of the third-party payer information you requested because we received the third-party payer information electronically. To get a paper document with the amount that third- party payors reported to the IRS, contact the third-party payers directly. Alternatively, you could submit to the IRS, Form 4506-T, Request for Transcript of Tax Return, to receive data reported on the information returns; or submit to the IRS, Form 4506, Request for Copy of Tax Return, to request a paper copy of your filed tax return. See www.irs.gov/ f4506t or www.irs.gov/ f4506 for more information. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Adopted
Disagree, will be updated with notice design – We can’t send you a copy of the information you requested because we received it electronically. To get a paper document with the amount reported to us, contact the payers in this notice. Alternatively, you can submit Form 4506-T, Request for Copy of Tax Return, to receive data reported on the information returns or file Form 4506, Request for Transcript of Tax Return, to request a paper copy. See IRS.gov/form45060t or IRS.gov/form4506 for more information.
RECOMMENDATION 2848
RECOMMENDATION TEXT:
We’re proposing to disallow the amount of Earned Income Credit you claimed because your investment income now exceeds $10,000. We propose disallowing the Earned Income Credit amount you claimed because your investment income now exceeds $10,000. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant
IRS Action: Not adopted
Disagree, will be updated with notice redesign, We’re proposing to disallow the amount of Earned Income Credit you claimed because your investment income now exceeds the tolerance. For specific tolerance amounts, see instruction for Form 1040, U.S. Individual Income Tax Return.
RECOMMENDATION 2849
RECOMMENDATION TEXT:
We’re proposing to disallow the amount of adoption credit you claimed based on our proposed changes to your modified adjusted gross income (MAGI). For more information, see the instructions for Form 8839, Qualified Adoption Expenses. We propose disallowing the adoption credit amount you claimed based on our proposed changes to your modified adjusted gross income (MAGI). For more information, see the instructions for Form 8839, Qualified Adoption Expenses. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated as part of notice redesign, We’re proposing to disallow the amount of adoption credit you claimed based on our proposed changes to your modified adjusted gross income (MAGI). For more information and the MAGI limitations, see the instructions for Form 8839, Qualified Adoption Expenses.
RECOMMENDATION 2850
RECOMMENDATION TEXT:
Education credits cannot be claimed if your filing status is married filing separately, you’re claimed as a dependent on someone else’s tax return, or you’re a nonresident alien. We disallowed the amount claimed on Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), because our records show you aren’t eligible. Education Credits cannot be claimed if: (1) your filing status is married filing separately; (2) someone claimed you as a dependent on their tax return; or (3) you are a nonresident alien. We disallowed the Education Credit amount you claimed on Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), because our records show you are not eligible to claim the Education Credit. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated as part of notice redesign, Education credits can’t be claimed if your filing status is married filing separately, you’re claimed as a dependent on someone else’s tax return, or you’re a nonresident alien. We disallowed the amount claimed on Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits), because our records indicate you aren’t eligible.
RECOMMENDATION 2851
RECOMMENDATION TEXT:
Your response included a request for Recovery Rebate Credit; however, we can’t process the request. To claim the Recovery Rebate Credit, you need to file an Amended U.S. Individual Income Tax Return. Send the amended return to the processing center for your state, the information is located on www.irs.gov- Where to File Paper Tax Returns With or Without a Payment. If your response included Form 1040-X, we will forward the Form 1040-X to your processing center once our issues have been resolved. Your response included a request for Recovery Rebate Credit; however, we cannot process the request. To claim the Recovery Rebate Credit, you need to file an Amended U.S. Individual Income Tax Return. Send your amended return to the processing center for your state. You can find your state’s processing center at www. irs.gov-Where to File Paper Tax Returns with or Without a Payment. If your response included Form 1040-X, we will forward the Form 1040-X to your state processing center, once the issues highlighted in this Notice of Proposed Changes are resolved. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated as part of the notice redesign – You’re response included a request for Recovery Rebate Credit; however, we can’t process the request. To claim the Recovery Rebate Credit, you need to file an Amended U.S. Individual Income Tax Return. Return the amended return to the processing center for your state, the information is located on irs.gov-Where to File Paper Tax Returns With or Without a Payment. If your response included Form 1040-X, we’ll forward the Form 1040-X to your processing center once our issues are resolved.
RECOMMENDATION 2852
RECOMMENDATION TEXT:
The Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), attached to your return shows you were insolvent. To be considered insolvent, you must provide a statement of your assets and liabilities immediately before the debt was cancelled. You’re considered insolvent only when your liabilities exceed your assets. If you can exclude the canceled debt due to insolvency, provide a detail of your total assets and liabilities immediately before the discharge. For more information and a worksheet to help calculate insolvency, see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals).
The information you entered on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), and then attached to your return, claim you were insolvent. To be considered insolvent, you must provide a statement of your assets and liabilities immediately before the debt was cancelled. The IRS consider you insolvent only when your liabilities exceed your assets. In order to exclude the canceled debt from your income, due to your insolvency, please provide details of your total assets and liabilities immediately before the discharge of debt. For more information and a worksheet to help calculate insolvency, see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals).
To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant.
IRS Action: Not adopted
Disagree, will be updated as part of notice redesign, The Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), attached to your tax return indicates you were insolvent. To be considered insolvent, you must provide a statement of your assets and liabilities immediately before the debt was cancelled. You’re considered insolvent only when your liabilities exceed your assets. If you can exclude the canceled debt due to insolvency, provide a detail of your total assets and liabilities immediately before the discharge. For more information and a worksheet to help calculate insolvency, see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals).
RECOMMENDATION 2853
RECOMMENDATION TEXT:
We’re proposing to increase your income for unemployment compensation reported to us by the payer shown in this notice. The American Rescue Plan Act (ARPA) of 2021 included a retroactive provision for unemployment income effective for 2020 tax returns. The provision allows for an exclusion from income of up to $10,200 of unemployment income for individual taxpayers ($20,400 for married filing joint filers) with a modified adjusted gross income of less than $150,000. We adjusted the taxable unemployment compensation amount to allow the correct exclusion amount. Unemployment compensation benefits are fully taxable. Payers report unemployment compensation on Form 1099- G, Certain Government Payments. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits, and we’ll review our proposal. We propose an increase to your income for unemployment compensation benefits reported by the third-party payer shown in this Notice of Proposed Changes. The American Rescue Plan Act (ARPA) of 2021 included a retroactive provision for unemployment compensation benefits effective for 2020 tax year returns. The American Rescue Plan Act allows certain taxpayers to exclude from income, up to $10,200 of unemployment compensation benefits for individual taxpayers ($20,400 for married filing joint filers). Taxpayers can exclude unemployment compensation benefits if taxpayer’s modified adjusted gross income is less than$150,000. Because your modified adjusted gross income is $150,000 or greater, we included taxable unemployment compensation benefits in your taxable income. If you repaid any of these unemployment compensation benefits, provide a signed statement detailing the amounts and dates of the unemployment compensation benefits you repaid. To better explain the IRS issues and taxpayer options, thus easing the burden on the taxpayer and helping taxpayers become compliant
IRS Action: Not adopted
Disagree, will be updated as part of notice redesign – We’re proposing to increase your income for unemployment compensation reported to us by the payer using Form 1099-G, Certain Government Payments and shown in this notice. The American Rescue Plan Act (ARP) of 2021 included a retroactive provision for unemployment income effective for 2020 tax returns. The provision allows for an exclusion from income up to $10,200 for individual taxpayers ($20,400 for married filing joint filers) with a modified adjusted gross income of less than $150,000. The taxable unemployment compensation amount has been adjusted to allow the correct exclusion amount. If you repaid any of these benefits, provide us with the amount and the dates you repaid the benefits, and we’ll review our proposal
