Blog - Federal & State Notice Compliance

What is IRS Notice CP80?

Written by Susana | Jun 30, 2023 3:12:12 PM

Every year, the IRS mails letters or notices to taxpayers for many different reasons. If your company receiving an official IRS notice or letter concerns you, you are not alone. However, most IRS tax notices are sent to simply provide information and are not necessarily bad. The notice or letter will clearly explain the reason for the contact and provide instructions on handling the issue. 

 

One of the more commonly received IRS notices is CP80. We'll discuss what IRS notice CP80 is to eliminate confusion over handling this specific notice. In this article, you'll learn about: 

 

  • What IRS Notice CP80 is 
  • Why you received IRS Notice CP80 
  • What to do after receiving IRS Notice CP80 
  • The response deadline for IRS Notice CP80

 

Understanding IRS Notice CP80  

So, what is the IRS Notice CP80? The IRS sends out Notice CP80 to companies and taxpayers when they have a credit on their account. There are three main reasons that you received Notice CP80: 

  1. Taxes were withheld or the company made estimated tax payments. 
  2. The tax return was not filed by the due date. 
  3. The IRS sent CP80 to notify you that you have credits on your tax account for the tax period shown on the notice. However, they haven't received a tax return. 

 

The third reason listed is the most common reason for receiving CP80. IRS Notice CP80 implies you will receive a tax refund if you file. 

It's important to understand that you must respond to this letter as soon as possible. The deadline to file a tax return is three years after the return requesting a refund was due. The IRS will not issue refunds for any tax returns filed more than three years after they were due. 

 

What to Do After Receiving Notice CP80 

Once you receive IRS Notice CP80, there are actionable steps to take. It's crucial to understand that this specific notice requires a response and that there is a three-year deadline. Some taxpayers and corporations may push this notice to the bottom of their priority list because of the extensive deadline, which is not advisable. When you receive multiple IRS notices, it becomes harder to stay on top of tax notices. The sooner you respond, the sooner you can check it off your to-do list. 

 

Follow these steps after receiving IRS Notice CP80: 

  1. Read the notice carefully and verify there is a credit on your tax account. 
  2. Following the instructions on the notice, complete and send in your tax return for the requested tax period. 
  3. If you have already submitted your company’s tax return before receiving Notice CP80, send another signed and dated copy of the tax return. 

 

It's important to note that you may request to apply the tax credit to a different tax account. If you wish to do so, call to speak to an IRS representative at (800) 829-8374 and give them the details of the account to which the credit should be transferred. 

 

If you suspect you wrongfully received IRS Notice CP80, or you think you are not required to file a tax return, call (800) 829-8374 to discuss your concerns with an IRS representative. 

 

Return Your Tax Return as Quickly as Possible  

Not all IRS notices require responses, but CP80 is not one of them. Notice CP80 requires a response within three years of the due date. If you fail to file the tax return within the allotted three years, your company will lose its refund. We recommend complying with the instructions on this notice as soon as possible to avoid forgetting to do so. 

 

Keep Track of Notices with NOTICENINJA 

Staying on top of IRS tax notices is sometimes easier said than done. Business leaders have many important tasks on their plate, and IRS tax notices sometimes fall to the bottom of their priority list. At Notice Ninja, we understand how many IRS tax notices businesses can receive, which is where our automation software can help you organize all IRS tax notices.  

 

Our user-friendly automation system helps you respond quickly to all IRS letters and notices while keeping track of all deadlines and notifying users before notices are due. Contact us to learn more about our services and how we can help you stay compliant!