Glossary

CP259D Notice: Request for Missing Information

What Does an IRS CP259D Notice Mean?

A CP259D notice is a formal request from the IRS, sent when they need more information to process your tax return. It usually indicates that something is missing, unclear, or doesn’t match their records. You must respond to this notice, or your tax processing might be delayed.

Common Misconceptions About CP259D Notices

Let’s clear up some common misconceptions about CP259D notices:

“It means I’m being audited.” Not necessarily. A CP259D is usually just a request for more information, not an audit.
“It’s the IRS accusing me of tax fraud.” This is highly unlikely. The IRS sends CP259D notices for simple reasons like missing information.
“I can ignore it and it will go away.” Definitely not! Ignoring a CP259D notice will only delay processing and may lead to more problems.

Related Tax Concepts

Understanding a CP259D notice is easier if you know these related terms:

Tax Return: Your annual filing with the IRS summarizing your income, deductions, and tax liability.
IRS Notice: Formal communication from the IRS.
Audit: A thorough examination of your tax return by the IRS.
Tax Refund: The amount of money the IRS owes you if you overpaid your taxes.
Tax Penalty: A fee charged by the IRS for failing to comply with tax rules and deadlines.

By understanding these terms, you’ll be better equipped to deal with any issues that might arise.

Tips for Responding Effectively

Here are some final tips to help you navigate a CP259D notice:

Be clear and concise: Your response should be direct and to the point.
Organize your documents: Ensure your supporting documentation is well organized and easy to read.
If you don’t understand, ask for help: Don’t hesitate to seek professional help.

Handling IRS communication can feel daunting. However, with the right knowledge and careful attention to detail, you can easily navigate a CP259D notice.

Recommended for You

CP176 Penalty for Incorrect Tax Refund Calculations

The CP176 notice is issued for penalties related to incorrect tax refund calculations. It informs taxpayers of discrepancies and associated penalties.

Fees for Export Subsidy Applications Deduction

The Fees for Export Subsidy Applications Deduction allows exporters to reduce taxable income by accounting for expenses incurred during export subsidy applications.

Accuracy-Related Penalty

The Accuracy-Related Penalty is an IRS-imposed penalty on taxpayers who inaccurately report income, deductions, or credits on their tax return.

Property Value Assessment Appeal

A Property Value Assessment Appeal allows property owners to challenge the assessed value of their property for tax purposes, potentially reducing their tax liability.

Statewide EV Infrastructure Development Credit

The Statewide EV Infrastructure Development Credit supports the expansion of electric vehicle infrastructure through tax incentives, promoting sustainable transportation.

Tax Levy

A tax levy is a legal seizure of your property by the IRS to satisfy unpaid taxes. It's a serious action the IRS takes when other collection methods fail.

CP284 Penalty for Incorrect Business Tax Payments

The CP284 Penalty is imposed by the IRS for errors in business tax payments due to underpayment or incorrect filing. Understanding this penalty can help businesses maintain compliance and avoid financial penalties.

Affordable Renewable Workforce Electrification Job Credit

The Affordable Renewable Workforce Electrification Job Credit promotes green energy employment by offering tax credits to companies that create jobs in renewable energy sectors.

Fees for Tax-Exempt Organization Filing Deduction

The Fees for Tax-Exempt Organization Filing Deduction involve costs associated with filing for tax-exempt status, crucial for financial compliance.

Subscription for Cloud Collaboration Tools Deduction

Explore how the 'Subscription for Cloud Collaboration Tools Deduction' can benefit businesses by allowing them to deduct expenses on productivity tools from taxes.

CP89H Notice

The CP89H Notice is an IRS communication informing taxpayers of potential unidentified discrepancies in their returns, prompting them to verify and rectify their tax accounts.

AI Customer Engagement Tools Deduction

The AI Customer Engagement Tools Deduction pertains to tax deductions available for businesses using AI-driven customer engagement platforms to enhance their operations.

Digital Marketing Campaign Costs Deduction

Digital Marketing Campaign Costs Deduction allows businesses to reduce taxable income by deducting costs associated with online marketing efforts.

Form 5305-SIMPLE – Savings Incentive Match Plan for Employees

Form 5305-SIMPLE is the official IRS document used to set up a SIMPLE IRA plan, a retirement savings option for small businesses and their employees. It's a streamlined approach to retirement planning.

Waiver for Duplicate Business Income Filings

The Waiver for Duplicate Business Income Filings helps businesses avoid double taxation by waiving penalties and streamlining tax compliance when business income is inadvertently reported multiple times.

Undivided Interest in Liened Property

Undivided Interest in Liened Property involves the shared ownership of property that is subject to a lien. It has important tax implications and compliance requirements.

Tools for Renewable Energy Efficiency Audits Deduction

Learn about the tools for renewable energy efficiency audits deduction, including their purpose, key features, compliance requirements, and potential penalties.

Coastal Workforce Renewable Incentive Credit

The Coastal Workforce Renewable Incentive Credit offers tax benefits to businesses investing in renewable energy projects in coastal areas. This guide explains its purpose, features, and compliance requirements.

Revenue Recovery Bonds for Municipalities

Revenue Recovery Bonds for Municipalities are financial tools used by municipalities to stabilize or replenish their finances during periods of fiscal distress.

Workforce Solar Electrification Equity Credit

The Workforce Solar Electrification Equity Credit promotes tax incentives to support equitable solar energy workforce expansion.