What to Do About Notice CP747 A
Summary:
Notice CP747 A is issued by the IRS to inform taxpayers about issues related to an account or tax return. This notice typically indicates that additional documentation or clarification is needed regarding a filed return. The notice can address discrepancies in reported income, deductions, or credits. Responding promptly and accurately is crucial to avoid penalties, interest, or further actions from the IRS. This article provides a detailed overview of Notice CP747 A, the reasons it may be issued, steps to take in response, and tips to avoid future issues with the IRS.
Receiving an IRS notice can be stressful, and Notice CP747 A is no exception. This notice signals a potential problem with a tax return or account that requires the taxpayer’s attention. It may result from missing documents, unreported income, or discrepancies in deductions or credits. Taking immediate action to resolve Notice CP747 A can prevent further complications, such as penalties, interest, or even enforcement actions. In this guide, we’ll explain what this notice entails, why you might have received it, and the necessary steps to resolve the issue effectively.
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What Notice CP747 A means
Notice CP747 A is sent by the IRS when there is an issue with a tax return or taxpayer account that needs to be addressed. The notice serves as an alert that additional information or documentation is required to resolve discrepancies or confirm certain details on a tax return. It could indicate missing or incomplete paperwork, income that was not reported, or questions regarding claimed deductions or credits.
Receiving this notice does not automatically mean there is an error or that taxes are owed. Instead, it signals that the IRS needs clarification to process the return or maintain an accurate account. Failure to address the notice promptly can lead to additional penalties, interest, and further enforcement actions by the IRS.
- Request for documentation to verify certain income or deductions reported on your return.
- Notification of potential discrepancies found in your tax return, which need clarification.
- Alert about missing information, such as required forms or schedules.
- Warning about potential penalties if the issue is not resolved promptly.
Pro Tip
Set up an IRS online account to receive digital alerts and updates on your tax account. This helps you stay ahead of any potential issues and respond more quickly to notices.
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How Notice CP747 A can impact you
Receiving Notice CP747 A can have significant implications for taxpayers, especially if left unaddressed. Understanding the possible effects can help motivate timely action:
- Potential penalties: Ignoring the notice may result in penalties, including failure-to-pay penalties or accuracy-related penalties if corrections are not made.
- Interest accrual: Interest on any unpaid tax balance will continue to accrue if the issue relates to additional taxes owed.
- Delayed tax refunds: If the IRS is holding a refund due to discrepancies, resolving Notice CP747 A is necessary for the refund to be processed.
- Enforcement actions: Unresolved issues can escalate to IRS collection actions, including liens, levies, or wage garnishments.
Responding to the notice promptly and providing the requested documentation can help minimize these potential impacts and keep your tax situation under control.
Reasons you may have received Notice CP747 A
Several common scenarios can trigger Notice CP747 A. Understanding the reason behind the notice can help you determine the appropriate steps to resolve the issue.
Unreported or underreported income
If the IRS believes you have not reported all your income, this notice may be issued to request additional information or clarification. This could happen if the IRS receives information returns (e.g., Forms W-2 or 1099) that do not match the income reported on your tax return.
Missing documentation or forms
Sometimes, required forms or schedules may not be included with the original return. For example, if you claimed certain deductions or credits that require supporting documentation, such as Form 8862 for claiming the Earned Income Tax Credit, and failed to attach it, Notice CP747 A might be sent.
Discrepancies in claimed deductions or credits
The IRS may identify inconsistencies in claimed deductions or credits, leading to the issuance of Notice CP747 A. This might include discrepancies in itemized deductions, education credits, or business expenses that need further clarification.
Possible identity verification issues
In some cases, the IRS may send Notice CP747 A if it suspects potential identity theft or requires the taxpayer to verify their identity. This can happen if there are unusual filing patterns or suspicious activity associated with the account.
Amended return processing
If you filed an amended tax return (Form 1040X) to correct a previous year’s filing, the IRS may issue this notice to request additional information needed to process the changes or confirm the accuracy of the amended return.
Steps to resolve Notice CP747 A
Taking the right steps to address Notice CP747 A is essential to avoid further complications. Here’s a detailed guide on how to handle the situation:
- Review the notice carefully: Read the notice thoroughly to understand what the IRS is requesting and the tax year in question. Look for specific instructions on what documentation or information is needed.
- Gather supporting documents: Collect any documents that support the information reported on your tax return. This may include income statements (Forms W-2, 1099), receipts, or other records relevant to the discrepancies noted in the notice.
- File the necessary forms or documentation: If the notice requests specific forms or schedules, make sure to complete them accurately and include all required attachments. This might involve submitting forms like 8862, Form 15103, or a copy of an amended return.
- Respond within the deadline: The notice will usually specify a deadline for responding. Ensure that you provide the requested information within the given timeframe to avoid further penalties or interest.
- Contact the IRS if needed: If you have questions about the notice or need clarification on what is being requested, call the IRS using the phone number provided in the notice. Be prepared to verify your identity.
Pro Tip
Always keep thorough records of your tax filings and any correspondence with the IRS. This documentation can help resolve disputes quickly and protect you if there are any discrepancies.
Avoiding future issues with the IRS
While receiving Notice CP747 A can be concerning, there are proactive steps you can take to reduce the likelihood of encountering similar issues in the future:
- Double-check your tax return: Carefully review your tax return before filing to ensure all income is reported and that you have attached all necessary forms and schedules.
- Maintain thorough records: Keep copies of your tax returns, income statements, and supporting documents for at least seven years. This helps resolve potential IRS inquiries and provides a history of your filings.
- Use electronic filing: Filing your tax return electronically reduces the risk of errors and lost documents, making it easier for the IRS to process your return accurately and on time.
- Stay informed about tax law changes: Tax laws change frequently, so staying updated on current requirements can help you avoid mistakes that could trigger an IRS notice.
- Consult a tax professional: If your tax situation is complex, consider working with a tax advisor to ensure compliance and to help address any issues promptly.
Consequences of ignoring Notice CP747 A
Failure to respond to Notice CP747 A can result in severe consequences, as the IRS may escalate the issue. Potential outcomes of ignoring the notice include:
- Additional penalties: The IRS may assess accuracy-related penalties or failure-to-pay penalties on any tax amounts due.
- Interest on unpaid taxes: If additional taxes are owed, interest will continue to accrue until the balance is paid in full.
- Tax liens and levies: The IRS can place a lien on your assets or initiate levies to collect any outstanding tax debt.
- Delayed or forfeited refunds: If a refund is due, it may be delayed or withheld until the issue is resolved.
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Frequently asked questions
How long do I have to respond to Notice CP747 A?
The deadline to respond will be indicated on the notice, typically within 30 to 60 days. It’s best to address the issue as soon as possible to avoid penalties or interest accrual.
Can I resolve Notice CP747 A online?
In some cases, you may be able to resolve the notice through your IRS online account. This allows you to submit documents or verify information electronically. However, if the notice requires specific forms or extensive documentation, you may need to mail the requested information or speak directly with an IRS representative.
What should I do if I disagree with Notice CP747 A?
If you disagree with the contents of Notice CP747 A, gather all relevant documentation that supports your position. You can write a letter explaining why you believe the notice is incorrect and include any supporting evidence. Send the letter to the address listed on the notice. It may also be helpful to contact the IRS to discuss your concerns directly and ensure they understand your situation.
Will resolving Notice CP747 A affect my tax return status?
Responding to the notice could delay the processing of your tax return or any pending refund until the issue is resolved. Once the required information is submitted, the IRS will review the documentation and process your return accordingly. If everything is in order, any due refunds will be issued without further delay.
Is there any way to get an extension to respond to Notice CP747 A?
If you need more time to gather documentation or respond to the notice, contact the IRS as soon as possible. In some cases, the IRS may grant a brief extension, but it is not guaranteed. Make sure to explain your situation clearly and request the extension before the original deadline.
Can ignoring Notice CP747 A impact my credit score?
While the IRS does not report directly to credit bureaus, ignoring the notice can lead to actions that may affect your credit, such as tax liens. Once a lien is filed, it can show up on your credit report and lower your credit score. Promptly addressing the notice can help prevent these situations.
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.
| 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
- Notice CP747 A is issued when the IRS needs additional information or clarification on a tax return or account.
- Common reasons for the notice include unreported income, missing documentation, or discrepancies in deductions and credits.
- Failure to address the notice can result in penalties, interest accrual, and IRS enforcement actions like liens or levies.
- Responding promptly with the requested information can help resolve the issue and avoid further complications.
- Maintaining accurate records and filing your taxes correctly can reduce the risk of receiving similar notices in the future.
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