Receiving an IRS notice can feel overwhelming, but don’t worry! We’ve broken it down into a clear, easy-to-understand guide to help you navigate the process. IRS notices are letters sent to address specific issues with your tax account or return, such as owing additional taxes, errors, or requests for more information. Some require action, while others are just for your information. Below, we explain the most common IRS notices, what they mean, and what you need to do. Let’s make this stress-free!
Why Did I Get an IRS Notice?
The IRS sends notices for reasons like:
- You owe additional taxes or penalties.
- There’s a mistake or question about your tax return.
- They need more information or documentation.
- They’re informing you of changes or updates to your account.
Key Tip: Always read your notice carefully! It explains what the IRS wants and whether you need to respond. Ignoring a notice that requires action could lead to extra taxes, penalties, or interest.
Common IRS Notices and What They Mean
Here’s a simple breakdown of common IRS notices, what they’re about, and what to do. Each notice links to the official IRS page for more details.
- CP01: The IRS verified your identity theft claim and added a protection indicator to your account. Action: Keep this for your records; no response needed.
- CP01H: The Social Security Number (SSN) on your return belongs to a deceased person, so your return is locked. Action: Contact the Social Security Administration to correct any errors.
- CP03C: You need to report a change in home ownership for the First-Time Homebuyer Credit. Action: File the required form as instructed.
- CP04: You or your spouse may qualify for a combat zone tax deferment. Action: Send requested documentation to confirm eligibility.
- CP05: The IRS is reviewing your return for accuracy. Action: Wait 45 days; contact the IRS if you don’t hear back or get your refund.
- CP05A: The IRS needs documentation for income, withholding, credits, or business income. Action: Submit the requested documents.
- CP07: Your refund is on hold for a review of claimed benefits. Action: Wait 6-12 weeks if you owe no other debts; otherwise, contact the IRS.
- CP08: You may qualify for the Additional Child Tax Credit. Action: Complete and submit the Additional Child Tax Credit Worksheet and Form 1040 Schedule 8812.
- CP09: You may be eligible for the Earned Income Credit (EIC). Action: Sign and return the worksheet if eligible.
- CP10: Your return was adjusted due to a miscalculation. Action: Review changes and follow next steps in the notice.
- CP10A: Changes were made to your Earned Income Tax Credit due to a miscalculation. Action: Review and follow instructions.
- CP11: A miscalculation means you owe money. Action: Contact the IRS within 60 days if you disagree.
- CP12: The IRS corrected a miscalculation on your return. Action: No action if you agree; contact the IRS if you disagree.
- CP13: A miscalculation resulted in a zero balance—no refund or payment due. Action: No response needed.
- CP14: You owe taxes. Action: Pay by the due date or set up a payment plan.
- CP14I: You owe taxes or penalties on your IRA (e.g., missed minimum distribution). Action: Pay or contact the IRS.
- CP15B: You owe a Trust Fund Recovery Penalty for unpaid employment/excise taxes. Action: Pay by the due date or explore payment options.
- CP16: The IRS adjusted your return due to a miscalculation. Action: Contact the IRS within 60 days if you disagree.
- CP18: You may have incorrectly claimed deductions or credits. Action: No action needed; the IRS will follow up if documentation is required.
- CP19: Incorrect deductions/credits mean you owe taxes. Action: Complete and return the response form.
- CP20: Incorrect deductions/credits reduced your refund. Action: Review and respond if needed.
- CP21A: Changes you requested resulted in taxes owed. Action: Pay or contact the IRS if you disagree.
- CP21B: Changes you requested mean a refund is coming in 2-3 weeks. Action: No response needed.
- CP21C: Changes you requested result in a zero balance. Action: No response needed.
- CP21E: Audit changes were made to your return. Action: Contact the IRS if you disagree.
- CP22A: Changes you requested mean you owe money. Action: Pay or contact the IRS.
- CP23: A mismatch in estimated tax payments means you owe money. Action: Verify payments and contact the IRS if you disagree.
- CP24: A mismatch in estimated tax payments means a potential overpayment. Action: Verify and contact the IRS if needed.
- CP27: You may be eligible for the Earned Income Credit. Action: Complete and return the worksheet if eligible.
- CP30: You owe a penalty for underpaying estimated taxes. Action: Pay or contact the IRS.
- CP30A: The underpayment penalty was adjusted or removed. Action: Review and contact the IRS if needed.
- CP31: Your refund check was returned due to an incorrect address. Action: Update your address on IRS.gov.
- CP42: Part of your refund was applied to your spouse’s debts. Action: Contact the IRS if you disagree.
- CP45: The IRS couldn’t apply an overpayment to your estimated taxes. Action: Review and contact the IRS.
- CP49: Your entire refund was used to pay a tax debt. Action: Review and contact the IRS if needed.
- CP53: Direct deposit failed; a refund check was mailed. Action: No action needed.
- CP53A: Direct deposit failed; a refund will be reissued in 8-10 weeks. Action: Contact the IRS if no refund or follow-up in 10 weeks.
- CP54B: Your return shows a different name/ID than IRS records. Action: Contact the IRS to resolve.
- CP57: Installment payment failed due to insufficient funds; a penalty was applied. Action: Pay or set up a new plan.
- CP59: The IRS has no record of your prior tax return. Action: File immediately or explain why you don’t need to.
- CP63: Your refund is on hold due to unfiled returns. Action: File returns or provide an explanation.
- CP71: A reminder of taxes, penalties, and interest owed. Action: Pay or set up a payment plan.
- CP72: You may have filed a frivolous return with no legal basis. Action: Contact the IRS to resolve.
- CP74: You’re re-certified for the Earned Income Credit; expect a refund in 6 weeks if no debts. Action: No response needed.
- CP75: The IRS is auditing your Earned Income Credit and needs documentation. Action: Submit requested documents.
- CP75C: You’re banned from claiming the Earned Income Credit this year. Action: Contact the IRS if you disagree.
- CP75D: The IRS is auditing your income/withholding and needs documentation. Action: Submit requested documents.
- CP81: The refund statute of limitations is expiring. Action: File your return or contact the IRS.
- CP88: Your refund is on hold due to unfiled returns and owed taxes. Action: File returns or explain.
- CP90: The IRS plans to levy assets for unpaid taxes. Action: Pay or request a Collection Due Process hearing.
- CP90C: A levy has been placed; you can request a hearing. Action: Act quickly to appeal.
- CP91: The IRS plans to levy 15% of your Social Security benefits. Action: Pay or request a hearing.
- CP108: The IRS can’t apply a payment to the correct form/year. Action: Confirm or redirect the payment.
- CP112: A miscalculation means you’re due a refund. Action: No response needed.
- CP120A: Your organization’s tax-exempt status was revoked for not filing Form 990 for three years. Action: Contact the IRS.
- CP130: You may no longer need to pay the alternative minimum tax. Action: Review your filing requirements.
- CP141C: Your return is late and missing information. Action: Send the required information and voucher.
- CP141L: Your return was filed late. Action: Pay the amount due or send a written explanation.
- CP160: You owe taxes, penalties, and interest. Action: Pay or set up a payment plan.
- CP161: You have an unpaid tax balance. Action: Verify payments and pay or arrange a payment plan.
- CP163: A reminder for “currently not collectible” status with owed taxes. Action: No immediate action; monitor your status.
- CP166: Installment payment failed due to insufficient funds. Action: Pay or set up a new plan.
- CP180/CP181: Your return is missing a form/schedule. Action: Submit the required form by the due date.
- CP210/CP220: The IRS made changes to your return. Action: Review and contact the IRS if you disagree.
- CP231: Your refund was returned; update your address. Action: Update your address on IRS.gov.
- CP254: You filed a paper return but must file electronically. Action: File electronically to avoid penalties.
- CP255: The IRS needs info to finalize your private foundation termination. Action: Provide requested information.
- CP259: You didn’t file a required business tax return. Action: File immediately.
- CP261: Your Form 2553 (S Corporation Election) was approved. Action: Keep the letter and file Form 1120S.
- CP268: A miscalculation means a potential overpayment. Action: Review and contact the IRS if needed.
- CP279/CP279A: Your Qualified Subchapter S Subsidiary election was accepted. Action: Keep the notice for your records.
- CP282: Your partnership may owe withholding tax on foreign partners’ income. Action: Check with a tax professional.
- CP283C: You owe a penalty for a late/incomplete Form 8955-SSA. Action: Pay or contact the IRS.
- CP297/CP297A/CP297C: The IRS plans to levy assets or has levied for unpaid taxes. Action: Pay or request a Collection Due Process hearing.
- CP298: The IRS plans to levy Social Security benefits for unpaid taxes. Action: Pay or request a hearing.
- CP501: You owe a balance on your tax account. Action: Pay by the due date or set up a payment plan.
- CP504/CP504B: You owe taxes; the IRS may levy your state refund or property. Action: Pay immediately or request a hearing.
- CP515I/CP516/CP518I/CP518: Final reminder to file missing tax returns. Action: File immediately or explain why you don’t need to.
- CP521: Reminder of an installment payment due. Action: Pay by the due date.
- CP523: Your payment plan may be terminated for defaulting. Action: Pay to avoid termination and fees.
- CP565: You’ve been issued an ITIN. Action: Use it for tax filings.
- CP566: The IRS needs more info for your ITIN application. Action: Provide requested information.
- CP567: Your ITIN application was rejected. Action: Contact the IRS for next steps.
- CP2000: Your return doesn’t match IRS records, affecting your taxes. Action: Review, agree, or submit supporting documents.
- CP2005: The IRS accepted your information; no changes made. Action: No response needed.
- CP2006: The IRS received your info and will follow up. Action: Wait for their decision.
- CP2030: Proposed changes to your corporate return. Action: Pay, set up a payment plan, or send a signed statement of disagreement.
- CP2057: You must file an amended return due to new information. Action: File the amendment.
- CP2566/CP2566R: The IRS calculated your taxes due to an unfiled return. Action: File your return or accept the proposed changes.
- CP3219A: IRS records differ from your return, affecting taxes. Action: Agree and sign Form 5564 or send supporting documents.
- CP3219B: Statutory Notice of Deficiency; taxes may change. Action: Agree and sign Form 4089 or petition the Tax Court within 90 days.
Tips for Handling IRS Notices
- Read Carefully: Check the notice number (e.g., CP01) and follow the instructions.
- Act Fast: Respond by the deadline to avoid penalties, interest, or levies.
- Verify Payments: For notices about balances (e.g., CP14, CP23), confirm all payments were credited.
- Gather Documents: Have receipts, bank statements, or tax forms ready if documentation is requested.
- Use IRS Resources: Visit IRS.gov or call the number on your notice for help.
- Set Up a Payment Plan: If you owe money and can’t pay in full, explore IRS payment plans.
- Get Professional Help: For complex issues (e.g., audits, levies), consult a tax professional or attorney.
Why Acting Quickly Matters
Ignoring an IRS notice can lead to:
- Penalties and Interest: Added costs for unpaid taxes.
- Levies: The IRS could seize assets or Social Security benefits.
- Lost Refunds: Missing deadlines (e.g., CP81) could mean losing your refund.
- Audits or Legal Action: Unresolved issues may escalate.
Stay Calm and Take Control
An IRS notice doesn’t mean you’re in trouble—it’s often just a request for clarification or payment. By responding promptly and using the resources linked above, you can resolve issues quickly and avoid complications. If you’re unsure, the IRS website and phone support are there to help, or a tax professional can guide you.
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