CP79 Notice: What It Means and How to Respond

Last updated 11/01/2024 by

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Summary:

The CP79 Notice is sent by the IRS to inform taxpayers of significant changes to their tax account due to adjustments, credits, or identity theft concerns. It serves as a prompt for taxpayers to review their account and verify the information provided. The notice might include instructions on resolving issues, correcting inaccuracies, or verifying identity. Acting on the notice promptly can help prevent delays in processing tax returns and refunds.

Receiving a notice from the IRS can trigger anxiety, especially when it involves changes to your tax account. One such notice is the CP79 Notice, which typically alerts taxpayers of adjustments made by the IRS to their accounts, often related to tax credits or identity verification. The reasons behind this notice can vary, but understanding how to address it efficiently is key to avoiding unnecessary delays in tax filings and refunds.

In this article, we will provide an in-depth explanation of the CP79 Notice, its implications, and the necessary steps to take if you receive one. Whether it’s a question of verifying your identity or rectifying an error, acting promptly can make all the difference.

Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.

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What is CP79 Notice?

The CP79 Notice is issued by the IRS when they make significant adjustments or changes to a taxpayer’s account. These changes may be due to tax credits, reported income discrepancies, or concerns surrounding identity theft. It’s a signal from the IRS that they have reviewed your account and have either made a correction, requested further information, or need you to verify your identity to continue processing your tax return.

This notice is part of the IRS’s broader efforts to prevent fraud and ensure that taxpayers’ identities are protected. If a CP79 Notice is linked to an identity theft concern, it means the IRS has taken precautionary steps to safeguard your account. This may temporarily affect the processing of your tax return until the situation is resolved.

Key triggers for a CP79 Notice:

Adjustments made to tax credits
Discrepancies in reported income or deductions
Potential identity theft or fraudulent activity
Issues requiring further verification of taxpayer identity

Receiving this notice can be alarming, but it’s important to understand that the IRS is attempting to protect your account. Addressing the matter quickly ensures that any disruption to your tax processing is minimized.

How the CP79 Notice affects you

When you receive a CP79 Notice, it’s an indication that the IRS has flagged your account for review or adjustment. This can have several effects, including:

Delay in tax processing: If the notice requires identity verification or additional documentation, your tax return and potential refund may be delayed until the IRS receives the required information.
Changes to tax credits: The IRS may have adjusted your tax credits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC). These adjustments could either increase or decrease the amount of your refund or the taxes owed.
Identity verification concerns: If the notice is related to identity theft, the IRS will request additional documentation to verify your identity before processing your tax return.

Failure to act on the CP79 Notice promptly could lead to prolonged delays in receiving your refund or finalizing your tax filing. Ignoring it could also lead to penalties or interest accruing on taxes owed, particularly if the issue stems from discrepancies in reported income or deductions.

Pro tip

The sooner you act, the faster the IRS can resolve your case, helping you avoid delays in tax return processing and potential penalties.

What should you do when you receive CP79 Notice?

Upon receiving a CP79 Notice, it’s crucial to take the following steps:

Review the notice carefully: Understand why the IRS has issued the notice. Is it related to tax credits, identity verification, or another adjustment?
Verify your tax return details: Double-check the accuracy of the information on your tax return, including your reported income, deductions, and any tax credits claimed.
Follow the IRS instructions: The notice will provide specific steps to resolve the issue, such as submitting additional documentation or verifying your identity.
Contact the IRS if needed: If the notice is unclear or you need more guidance, reach out to the IRS using the contact information provided. Alternatively, you can visit your local IRS office for assistance.
Respond promptly: Delaying your response could lead to further complications, including delays in tax refund processing or penalties.

Documentation to include:

A copy of the CP79 Notice
Supporting documents requested by the IRS (e.g., identity verification)
A written statement if clarification or additional explanation is needed

By following these steps, you can help resolve the matter and ensure your tax return continues to be processed without further delays.

Pro tip

Always double-check your documentation, including your SSN and tax information, to ensure everything matches. This will help streamline the resolution process.

How to respond to the CP79 Notice

Steps to take when responding to a CP79 Notice:

Responding to the CP79 Notice involves addressing the specific issue raised by the IRS. Here’s how to navigate the process:

1. Read the notice thoroughly: Understand the issue at hand, whether it’s identity verification or an adjustment to your return.
2. Collect the required documents: The IRS will likely request supporting documents to verify your claim, especially in cases of identity theft or discrepancies in tax credits.
3. Submit your response: Follow the mailing or online submission instructions provided in the notice. Ensure that all necessary documents, including government-issued identification, are included.

In many cases, the IRS may request that you verify your identity by providing documents such as:

A copy of a government-issued ID (e.g., passport, driver’s license)
A copy of your tax return with original signatures
Any additional documents requested in the CP79 Notice

Timely submission of these documents is crucial in ensuring your tax return is processed without further delays.

Other ways to handle a CP79 Notice:

In cases where identity theft is suspected, enrolling in the IRS’s Identity Protection PIN (IP PIN) program may be beneficial. This program adds an extra layer of security to your tax filings by issuing a unique PIN that you use each year when submitting your return.

Additionally, while written communication is the standard way to resolve CP79 Notices, contacting the IRS directly by phone can expedite the process if your situation requires urgent resolution.

Pro tip

If you’re uncertain about any part of the CP79 Notice or need assistance with tax adjustments, reaching out to a CPA or tax attorney can save time and avoid mistakes.

Further support options for addressing the CP79 Notice

If you feel uncertain about the next steps after receiving a CP79 Notice, here are some resources and support options:

Consult a certified tax professional: Whether a CPA or tax attorney, professionals can provide personalized guidance to help you navigate the process.
Visit the IRS website: For additional information, visit the IRS’s online portal, which may have helpful articles or FAQ sections that address your concerns.
Contact the IRS directly: Reach out to the IRS by phone or visit a local office to speak with a representative.
Taxpayer Advocate Service: This service provides free assistance to taxpayers who are struggling to resolve issues with the IRS.

If your situation involves identity theft or complex adjustments, seeking professional advice is highly recommended. A tax professional can offer insights that may help you avoid future complications.

Potential penalties or next steps if you don’t respond

Failing to respond to a CP79 Notice can lead to several consequences:

Delayed refunds: If the IRS cannot process your return, any refund due to you may be delayed until the matter is resolved.
Accrual of penalties and interest: Depending on the nature of the adjustment or discrepancy, penalties and interest on taxes owed may accumulate.
Further IRS actions: In rare cases, the IRS may take enforcement actions, such as applying penalties or garnishing wages, especially if the issue involves unreported income or fraudulent activity.

It’s crucial to address the notice promptly to avoid any of these outcomes. Quick action can also prevent prolonged disruptions to your tax account.

What potential outcomes are possible?

Once you’ve addressed the CP79 Notice, the following outcomes are possible:

If sufficient evidence is provided: The IRS will update their records, and your tax return will proceed as normal.
If an error is identified: The IRS will correct the mistake, and any refund or credit adjustments will be processed.
If identity theft is confirmed: The IRS will take steps to protect your account, such as enrolling you in the IP PIN program.

The key to minimizing disruptions is responding promptly and providing the requested documents. The sooner you act, the quicker the IRS can resolve the matter.

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Frequently asked questions

Why did I receive a CP79 Notice?

You received the notice because the IRS identified a discrepancy in your tax account. This could be related to tax credits, adjustments in income, or a potential identity theft issue.

How do I unlock my account or resolve the issue?

To resolve the issue, follow the instructions provided on the CP79 Notice, which may include verifying your identity or submitting additional documents to the IRS.

What happens if I ignore the CP79 Notice?

Ignoring the notice can lead to delays in tax return processing and possible penalties, including interest on unpaid taxes or enforcement actions by the IRS.

Can I resolve the issue online?

In some cases, you may be able to resolve the issue online through the IRS’s secure portal. However, most situations involving a CP79 Notice will require you to submit documents by mail or contact the IRS directly.

Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.

IRS Letter or Notice Number

Notice Description

CP01	The IRS verified your claim of identity theft and will monitor your account.
CP01H	The IRS received a tax return with a social security number that belongs to a dead person.
CP02H	Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma.
CP03C	You received the First-Time Homebuyer Credit for a house you purchased.
CP04	You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice.
CP08	You may be entitled to additional money due to the Additional Child Tax Credit.
CP10	Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed.
CP10A	Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed.
CP11	You owe money because the IRS amended your return due to a miscalculation.
CP11A	Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed.
CP11M	Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed.
CP12	You are due a bigger refund because the IRS corrected one or more mistakes on your tax return.
CP12A	The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return.
CP12E or CP12F	The IRS corrected a miscalculation on your return.
CP12M	The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.
CP12R	The IRS made changes to the computation of the Rebate Recovery Credit on your return.
CP13	The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero.
CP13A	The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero.
CP13M	The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero.
CP13R	The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero.
CP14	You owe money on unpaid taxes.
CP16	The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts.
CP21A	You owe money due to the changes you requested that the IRS make on your tax returns.
CP21B	You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks.
CP21C	The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero.
CP21E	As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes.
CP21I	The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP22A	The IRS made the changes you requested, and you owe money as a result.
CP22E	As a result of your recent audit, the IRS changed your tax return, and you now owe money.
CP22I	The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP23	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes.
CP24	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes.
CP24E	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes.
CP25	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero.
CP31	You need to update your address because your refund check was returned to the IRS.
CP45	The IRS was unable to apply your overpayment to your estimated tax as you requested.
CP49	The IRS used all or part of your refund to pay a tax debt.
CP53	Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit.
CP57	The bank declined your payment, so the IRS was unable to draft funds from your bank account.
CP71	A reminder of the amount you owe in tax, penalty, and interest.
CP71A	A reminder of the amount you owe in tax, penalty, and interest.
CP71C	A reminder of the amount you owe in tax, penalty, and interest.
CP71D	A reminder of the amount you owe in tax, penalty, and interest.
CP88	The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax.
CP90	The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing.
CP91	The IRS will levy up to 15% of your social security benefits for unpaid taxes.
CP120	The IRS needs documentation of your tax-exempt status.
CP120A	Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years.
CP130	You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed.
CP152	The IRS received your return.
CP153	The IRS will send your refund by mail because your direct deposit did not go through.
CP161	You have an unpaid balance due to the IRS.
CP166	Your monthly payment to the IRS did not go through due to insufficient funds in your bank account.
CP178	You may no longer owe excise tax because your tax return filing requirements changed.
CP231	You need to update your address because your refund was returned to the IRS.
CP259	You did not file the business tax return identified in the notice.
CP259A	You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard).
CP259B	The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259C	The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259D	You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return.
CP259E	You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP259F	The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return.
CP259G	The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.
CP259H	As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP276A	You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time.
CP276B	The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time.
CP297	The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP297A	The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP298	The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes.
CP501	You have a balance due on one of your tax accounts.
CP503	You have an unpaid balance on one of your accounts, and the IRS has not heard from you.
CP504	You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe.
CP504B	You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe.
CP521	A reminder that you have an installment agreement payment due.
CP523	You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets.
CP601	Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas.
CP603	No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas.
CP604	Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda.
CP604B	Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda.
CP621	Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente.
CP623	Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo.
CP711	Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones.
CP721	Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP722	Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP771	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP772	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP773	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP774	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP959	Usted no radicó su planilla de contribución de negocios identificada en este aviso.
CP2000	The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due.
CP3219A	The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax.
CP3219N	The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days.
Letter 0012C	The IRS needs additional information to process your tax return.
Letter 0484C	The IRS wants a completed
Letter 0525	Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed.
Letter 531	IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return.
Letter 0668D(LP 68)	The IRS released their levy.
Letter 0549C	Your tax bill was paid.
Letter 0681C	The IRS accepted your payment proposal. However, this is not a formal Installment Agreement.
Letter 0757C	You did not adhere to the terms of your Installment Agreement.
Letter LT 11	The IRS plans to seize your property or rights to property.
Letter 1058	The IRS has not received your payment. It plans to seize your property or rights to property.
Letter 1615 (LT 18)	You must respond to the IRS within 10 days of this notice regarding past due tax returns.
Letter 1737 (LT 27)	Complete and sign Form 433F, Collection Information Statement.
Letter 1961C	Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify.
Letter 1962C	Your application for a
Letter 2050 (LT 16)	The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed.
Letter 2257C	The IRS is providing the payoff amount that you requested.
Letter 226-J	An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP).
Letter 2271C	A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information.
Letter 2272C	An IRS letter explaining why your request to pay the balance due in installments was declined.
Letter 2273C	A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included.
Letter 2318C	A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged.
Letter 2357C	The IRS is admitting that it did not send you the balance due notices that it should have.
Letter 2603C	The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property.
Letter 2604C	The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction.
Letter 2761C	The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer.
Letter 2789C	An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid.
Letter 2840C	Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify).
Letter 3030C	Provides an explanation of the tax, penalty, and interest still due on your account.
Letter 3127C	A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities.
Letter 3174	A reminder of taxes due after the IRS has sent a Notice of Intent to Levy.
Letter 3217C	The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify).
Letter 3228 (LT 39)	A request to pay the balance due within 10 days using the envelope provided.
Letter 3500	The IRS has received your documents, and it needs additional time to review them.
Letter 3572	Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment.
Letter 4883C	The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately.
Letter 4903 (LT 26)	You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response.
Letter LP 47	The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address.
Letter LP 59	The IRS has not received a response to the notice of levy it previously sent.
Audit Letter 2205	The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit).
Letter 915	You recently underwent an audit, and the IRS informs you that you now owe taxes.

Key takeaways

A CP79 Notice is issued when the IRS adjusts your account due to discrepancies or identity concerns.
Responding promptly is essential to avoid delays in tax return processing and potential penalties.
Taxpayers may be required to verify their identity or submit additional documentation to resolve the issue.
Ignoring the notice can lead to interest, penalties, and prolonged disruptions in your tax filings.

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