Tax Problems and Solutions Handbook
Premium tax credit discrepancy audits in which the IRS has frozen the taxpayer’s refund until the taxpayer can prove the correctness of the PTC. [IRM 21.3.1.6.2 (10-1-2024)]
Updated: June 23, 2025
EITC audits in which the IRS has not frozen the taxpayer’s refund. [IRM 4.19.14.4 (1-01-2025]
Updated: June 23, 2025
EITC audits in which the IRS has frozen the taxpayer’s refund until the taxpayer can prove that she is entitled to the EITC. [IRM 4.19.14.4 (1-01-2025)]
Update: June 23, 2025
IRS is questioning underreporting of business income due to 1099-K reporting inconsistencies or discrepancies. Requires a response in 30 days that provides information that shows that the 1099-K is not accurate or an amended return to report the income. The IRS may contact the taxpayer for further enforcement (underreporter notice or audit).
Updated: June 23, 2025
IRS is questioning underreporting of business income due to 1099-K reporting inconsistencies or discrepancies. Requires a response in 30 days and for the taxpayer to complete Form 14420, Verification of Reported Income. IRS reserves the right to take further action, such as an audit or underreporter notice.
Updated: June 23, 2025
IRS is questioning underreporting of business income due to 1099-K reporting inconsistencies or discrepancies. Requires a response in 30 days that provides information that shows that the 1099-K is not accurate, an amended return to report the income, and/or an explanation that the return and 1099-K are correct with an explanation for why the business gross receipts from card payments are higher than expected (card payments as compared to cash payments received).
Updated: June 23, 2025
IRS is questioning underreporting of business income due to 1099-K reporting inconsistencies or discrepancies. This notice does not require a response to the IRS. The taxpayer may need to voluntarily file an amended return based on his own investigation of income.
Updated: June 23, 2025
Pre- Letter 2030 business underreporter matching letter. Requests taxpayer to resolve discrepancies related to business (EIN) underreporting (similar to individual letter CP2501).
Updated: June 23, 2025
Business underreporter matching notice showing underreported income information and proposing additional tax and penalties (similar to the individual letter CP2000).
Updated: June 23, 2025
Informs the taxpayer there appears to be a discrepancy with income reported by a third party to the IRS. The notice provides information, such as the name of the third party and the address, requests that the taxpayer review his records, and whether the income reported on the return is correct or not. The taxpayer is instructed to file an amended return if the original return was not correct.
Updated: June 23, 2025
