What Does CP Stand For in IRS Notices?
CP stands for “computer paragraph” in IRS notices.
In Internal Revenue Manual § 20.1.3.1.5, the IRS states:
“CP – Computer Paragraph – Refers to computer-generated internal and external notices.”
So if you receive a CP notice such as a CP14 or a CP501, this means that your notice was not written by hand by an IRS employee but generated by a computer at the IRS because certain actions or balances triggered the generation and sending of the notice you received.
Actions that trigger the issuance of a CP notice include:
- An IRS employee inputting a notice code or multiple notice codes on a particular module on your account
- An IRS computer performing an analysis of your account
- A particular transaction posting on your account that automatically triggers the issuance of a CP notice
Table of Contents
What Do CP Notices Do?
CP Notices may:
- request payment
- give instructions
- provide information
- request information
- propose penalties or assessments
How Many CP Notices Are There?
There are dozens of CP notices, ranging from informational notices such as the CP09, which simply informs the recipient that they may be eligible for the Earned Income Credit, to severe notices like the CP504, which urges the recipient to pay the amount indicated in the notice immediately or else the IRS may start taking their money forcibly to pay off their balance.
The table below indicates some of the most common CP notices.
| Notice Number | What It Is |
|---|---|
| CP05 | Your Tax Return Is Being Reviewed |
| CP05A | The IRS Is Holding Your Refund — Proof of Income and Withholding Needed |
| CP11 | Math Error Notice With Balance Due of $5.00 or More |
| CP13 | Math Error Notice With Balance Due of Less Than $5.00 |
| CP14 | Notice of Tax Due and Demand for Payment |
| CP14C | Balance Due on a Filed Return — Payment Deadline Postponed for a Disaster |
| CP14D | Notice of Tax Due and Demand for Payment (Redesigned Scan-and-Pay Notice) |
| CP14E | Notice of Tax Due and Demand for Payment |
| CP14F | Notice of Balance Due (Redesigned First Bill for Unpaid Taxes) |
| CP14G | Notice of Balance Due (Redesigned First Bill for Unpaid Taxes) |
| CP14IA | You Successfully Set Up a Payment Plan (Installment Agreement) |
| CP14J | Balance Due on a Filed Return — Failure-to-Pay Penalty Version |
| CP14K | Notice of Balance Due (Redesigned First Bill for Unpaid Taxes) |
| CP15 | Notice of Penalty Charge (Civil Penalty) |
| CP15B | Trust Fund Recovery Penalty Charged for Unpaid Payroll Taxes |
| CP21A | Data Processing Adjustment Notice — Balance Due |
| CP21B | Data Processing Adjustment Notice — Refund Owed |
| CP21C | Data Processing Adjustment Notice — Account Now Minimal |
| CP22A | Data Processing Adjustment Notice — Balance Due |
| CP22E | Notice of Examination Adjustments for Year Without a Previous Balance |
| CP23 | Balance Due After the IRS Corrected an Estimated Tax Payment Discrepancy |
| CP27 | You May Be Eligible for the Earned Income Credit (No Qualifying Children) |
| CP30 | Estimated Tax Penalty Charged (Your Refund Was Reduced) |
| CP30A | Estimated Tax Penalty Reduced (Your Refund Was Increased) |
| CP39 | Your Refund Was Applied to Another Account's Past-Due Balance |
| CP40 | Notice of Assignment of Delinquent Account to a Private Collection Agency |
| CP44 | Your Refund Is Delayed While the IRS Checks Whether You Owe Other Federal Taxes |
| CP45 | Reduction in Credit Elect Amount |
| CP49 | Notice of Overpayment Adjustment |
| CP59 | First Notice for Nonfiler Return Delinquency |
| CP60 | Notice of Credit Reversal Adjustment Causing Balance Due of $5 or More |
| CP62 | Notice of Credit Transfer — We Applied a Payment to Your Account |
| CP63 | We Have Held Your Tax Refund — Act Now |
| CP71A | Annual Reminder Notice for Tax Years in Status 53 (Currently Not Collectible) for More Than 65 Weeks |
| CP71C | Annual Reminder Notice for Tax Years in Status 24 With a Balance of $25 or More |
| CP71D | Annual Reminder Notice for Tax Years in Status 22 or Status 26 With a Balance of $25 or More |
| CP71H | Annual Reminder of the Shared Responsibility Payment (SRP) |
| CP74 | You Successfully Recertified for the Earned Income Credit |
| CP77 | Intent to Seize Your Assets and Notice of Your Right to a Hearing |
| CP79 | The IRS Denied or Reduced Your Tax Credits — Form 8862 Required to Claim Them Again |
| CP81 | Final Reminder Notice to File Return For Year With Credit Balance |
| CP081B | Final Reminder Notice to File Business Return For Year With Credit Balance |
| CP89 | Annual Installment Agreement Statement |
| CP90 | Notice of Intent to Seize Your Assets and Your Right to a Hearing |
| CP91 | Final Notice Before Levy on Social Security Benefits |
| CP92 | Notice of Seizure of Your State Tax Refund and Your Right to a Hearing |
| CP128 | Notification of Remaining Balance Due After Offset In |
| CP161 | Balance Due – Request for Payment or Notice of Unpaid Balance by Business Taxpayer |
| CP162A | Notice of Penalty Assessment Against Passthrough Entity |
| CP171 | Annual Reminder Notice for Business Balance Due |
| CP259 | First Notice for Nonfiler Return Delinquency (Business Taxpayer) |
| CP501 | Reminder Balance Due Notice |
| CP503 | Important Balance Due Notice |
| CP504 | Urgent Final Balance Due Notice |
| CP504B | Urgent Final Balance Due Notice for Business Taxpayer |
| CP508C | Notice of Certification of Your Seriously Delinquent Federal Tax Debt to the U.S. Department of State |
| CP508R | Reversal of Certification of Seriously Delinquent Tax Debt (Passport Hold Lifted) |
| CP518 | Final Notice of Return Delinquency |
| CP521 | Monthly Installment Agreement Payment Reminder |
| CP521D | Monthly Installment Agreement Payment Reminder |
| CP523 | Installment Agreement Default Notice with Intent to Levy |
| CP523A | Intent to Terminate Your Installment Agreement (New Tax Liability Unpaid) |
| CP523H | Installment Agreement Default Notice for Shared Responsibility Payment |
| CP2000 | Notice of Underreported Income |
| CP3219A | Automated Underreporter (AUR) Statutory Notice of Deficiency |
| CP3219N | Notice of Deficiency After the IRS Filed a Return for You |
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Here are step-by-step instructions on what you should do if you receive a CP notice from the IRS.
Step 1: Read the CP notice itself.
The most important thing to do with any notice — CP or otherwise — that you receive from the IRS is to read and understand it.
Your CP notice may not be as scary as you think it is — it may simply be the IRS informing you that you may qualify for some tax credit you didn’t claim on your tax return.
But even if your CP notice does have some teeth — like the CP504 mentioned previously — you have options.
Step 2: Contest any errors in the notice.
If you believe the IRS made mistakes in your CP notice, contest it with them.
There should be a phone number within the CP notice itself that you can call to discuss your disagreements with the IRS.
Step 3: Take any recommended action, if eligible.
If the IRS is saying in your CP notice that you may be eligible for certain tax benefits, research these benefits and claim them if you are eligible.
Step 4: Determine how to best address your tax liability.
If your CP notice is informing you that you have a balance due on your account, figure out how you’re going to deal with this balance before the IRS starts taking forced collection activity.
The options available to most taxpayers include:
- Paying their balance in full
- Negotiating an offer in compromise with the IRS
- Agreeing to an installment agreement with the IRS
- Seeking placement in a temporary hardship status with the IRS called currently not collectible status
For more information about all of these options, check out our article How to Fight the IRS and Win.
And of course, if you would like us to take a look at your CP notice and determine the best course of action for you, give us a call at 866-8000-TAX.
CP Notices FAQs
Will the IRS reissue a CP notice upon request?
No, the IRS will generally not reissue a CP Notice upon request — exceptions exist if a specific section of the Internal Revenue Manual (IRM) requires reissuance.
See IRM 21.3.1.2(1)c.
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Author:
Logan Allec, CPA, Founder and Owner
Logan Allec has been serving taxpayers as a CPA for over 14 years. After leaving his role at a "Big 4" firm, he started Choice Tax Relief to help everyday Americans who have found themselves behind on their taxes. He also educates thousands of people daily about tax relief on his YouTube channel. In addition to his CPA license, Logan also has a Master's Degree in Taxation from the University of Southern California (USC). He lives with his wife and children in the Los Angeles area. Learn more about Logan here.
