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Notice code 159 (Default) — We didn’t allow the amount claimed as a deductible part of self-employment tax on page 1 of your tax…
What this IRS notice code means, and what to check before you reply.
What to do next
Start with these steps before you reply.
159
Read the notice carefully and note any deadline. Gather returns, notices, and payment records. Book a free strategy session before responding if the amount is large, unclear, or collection language appears.
What the IRS language says
We didn’t allow the amount claimed as a deductible part of self-employment tax on page 1 of your tax return. Information on your Schedule SE, Self- Employment Tax, indicates that you should have used Form 4137, Social Security and Medicare Tax on Unreported Tip Income.
What it usually means
159 is in our IR Manual catalog. Official wording is dense — we translate it for business owners and individuals and map realistic next steps.
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