Understanding the IRS Substitute for Return
Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
NOTICE CP138
IRS Notice CP138 is a notice that the IRS sends to taxpayers to inform them that all or part of their overpayment from a tax return they filed has been applied to other federal taxes they owe. This can happen for a variety of reasons, such as:
- The taxpayer has unpaid taxes from previous years.
- The taxpayer has estimated tax payments due.
- The taxpayer has other tax debts, such as penalties or interest.
There are a few reasons why you might receive an IRS Notice CP138:
- You owe back taxes. If you have unpaid taxes from previous years, the IRS will apply your overpayment to those taxes first.
- You have estimated tax payments due. Estimated tax payments are quarterly payments that you make to the IRS if you expect to owe more than $1,000 in taxes for the year. If you have estimated tax payments due, the IRS will apply your overpayment to those payments first.
- You have other tax debts. If you have other tax debts, such as penalties or interest, the IRS will apply your overpayment to those debts first.
- If you receive an IRS Notice CP138, you should carefully review it to understand why the IRS applied your overpayment to other taxes. If you agree with the IRS’s decision, you do not need to take any further action. However, if you disagree with the IRS’s decision, you can contact the IRS to discuss your options.
- The best way to avoid receiving an IRS Notice CP138 is to make sure that you pay all of your taxes on time and in full. If you are not able to pay your taxes in full, you can contact the IRS to discuss a payment plan.
Important Tip: Not sure where to begin? Try our Tax Relief Finder tool. It helps you find IRS programs and gives recommendations for the best solution. Learn about our - Tax Relief Program Finder
Important Tip: Understanding the Tax-Relief process is an essential resource for individuals dealing with tax debt. It offers a road map guide, simplifying the steps needed to resolve tax-related issues- Tax-Relief Process
Ask Mike
You can now ask our AI assistant any questions you have about your tax debt or any tax-related issues. Whether you’re unsure about payment plans, need clarification on penalties, or want information on how to resolve your tax situation. Our AI is ready to assist you with all your tax-related concerns.
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Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
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Disclaimer: This is educational content, not legal, accounting, or tax advice.Â
