Explanation of IRS Notices
Below are many relevant notices and letters, as well a s the descriptions, and steps you need to take to address the relevant notice. If you receive any of these notices, this information is not meant to be a substitute for having a qualified tax attorney, and you should still seek the opinion of a qualified professional. Contact Insight Law today for a free consultation to learn your options early in the process.
CP01H
You are receiving this notice because the Social Security Administration identified that an SSN used on the federal income tax you filed belongs to an individual who was deceased prior to January 1 of the current tax year (not calendar year). The account was locked by the IRS to prevent identity theft by the misuse of this number.
CP10 & CP10A
The IRS made a change(s) to your return because we believe there’s a miscalculation. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year.
• Read your notice carefully – it will explain why we were unable to apply the amount you requested to next year’s taxes. It also will suggest additional steps for you to take, depending on your situation.
• Correct the copy of your tax return that you kept for your records.
• Adjust this year’s estimated tax payments to avoid a possible underpayment of next year’s taxes
CP11 & CP11A(EIC) & CP11M(Making Work Pay Credit)
The IRS made changes to your return because they believe there is a miscalculation. You owe money on your taxes as a result of these changes.
• Read your notice carefully – it will explain why you owe money on your taxes.
• Pay the amount owed by the date on the notice’s payment coupon.
• Make payment arrangements if you can’t pay the full amount you owe.
• Contact the IRS within 60 days of the date of your notice if you disagree with the changes made.
• Correct the copy of your tax return that you kept for your records.
CP12 & CPA12A(EIC) & CPA12E & CP12M(Making Work Pay Credit) & CP12R(Rebate Recovery Credit)
The IRS made changes to correct a miscalculation on your return.
• Review the notice, and compare the changes to the information on your tax return.
• If you agree with the changes made, do nothing; you should receive a refund check in 4-6 weeks, as long as you don’t owe other tax or debts the IRS is required to collect.
• If you don’t agree, call 1-800-829-8374 to review your account and correct mistake
• Do not cash the refund if it is a mistake
CP13 & CPA13A(EIC) & CP13M(Making Work Pay Credit) & CP13R(Rebate Recovery Credit)
The IRS made changes to your return because they believe there is a miscalculation. You’re not due a refund nor do you owe an additional amount because of the changes.
• Review the notice and compare the changes to the information on your tax return.
• Correct the copy of your tax return that you kept for your records.
• You don’t need to do anything if you agree with the notice.
• If you disagree with the notice, please contact the IRS at the toll-free number listed on the top right corner of the notice (within 60 days of its date).
CP14
The IRS sent you this notice because you owe money on unpaid taxes.
• Read your notice carefully – it will explain how much you owe and how to pay it.
• Pay the amount you owe by the date specified on the notice.
• Contact a tax attorney if you disagree.
CP14I
You owe taxes and penalties because you didn’t take out the minimum amount you had to from your traditional individual retirement arrangement (IRA). Or, you put into a tax-sheltered account more than you are legally allowed.
• Read your notice carefully – it will explain how much you owe and how to pay it.
• Pay the amount you owe by the date the notice asks.
• Contact a tax attorney if you disagree.
CP16
The IRS sent you this notice to tell you about changes they made to your return that affect your refund. They made these changes due to a miscalculation. Tax records showed you owed other tax debts and the IRS applied all or part of your refund to them.
• Read your notice carefully – it will explain the changes made to your tax return.
• Correct the copy of your tax return that you kept for your records.
• Contact the IRS within 60 days of the date of the notice if you disagree with the changes made by the IRS. A tax attorney is recommended.
CP21A
The IRS made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s).
CP21B
The IRS made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of the notice.
CP21C
The IRS made the change(s) you requested to your tax return for the tax year specified on the notice. You are not due a refund nor do you owe any additional amount. Your account balance for this tax form and tax year is zero.
CP21E
As a result of a recent audit, the IRS made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. If you disagree, it is vital to retain a tax attorney before you lose any further opportunities to challenge the liability.
CP21I
The IRS made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes.
CP22A
The IRS made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s).
CP22E
As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes.
CP22I
The IRS made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes.
CP23
The IRS made changes to your return because they found a difference between the amount of estimated tax payments on your tax return and the amount that was posted to your account. You have a balance due because of these changes.
• Read your notice carefully – it will explain how much money you owe on your taxes.
• Check the list of payments the IRS applied to your account to see if they applied all the payments you made.
• Correct the copy of your tax return that you kept for your records.
• Pay the amount you owe by the date on the notice’s payment coupon if you agree with the notice.
• If you disagree with the notice, you must contact the IRS at the number listed on the top right-hand corner of the notice (within 60 days of the notice’s date).
• You should also retain a tax attorney at this time.
CP24 & CP24E
The IRS made changes to your return because they found a difference between the amount of estimated tax payments on your tax return and the amount posted to your account. You have a potential overpayment credit because of these changes.
• Read your notice carefully – it will explain the changes made to your return.
• Check the list of payments applied to your account to see if the IRS applied all the payments you made.
• Correct the copy of your tax return that you kept for your records.
• You don’t need to do anything if you agree with the notice.
• If you disagree with the notice, you must contact the number listed on the top right-hand corner of the notice (within 60 days of the notice’s date).
CP25
The IRS made changes to your return because they found a difference between the amount of estimated tax payments on your tax return and the amount posted to your account. You’re not due a refund nor do you owe an additional amount because of the changes.
• Read your notice carefully – it will explain the changes made to your return.
• Check the list of payments applied to your account to see if the IRS applied all the payments you made.
• Correct the copy of your tax return that you kept for your records.
• You don’t need to do anything if you agree with the notice.
• If you disagree with the notice, you must contact the number listed on the top right-hand corner of the notice (within 60 days of the notice’s date).
CP31
Your refund check was returned to the IRS, and you need to update your address.
CP39
The IRS used a refund from your spouse or former spouse to pay your past due tax debt. You may still owe money.
CP42
The amount of your refund has changed because the IRS used all or a portion of it to pay your spouse’s past due tax debt.
CP45
The IRS was unable to apply your overpayment to your estimated tax as you requested.
CP49
The IRS sends you this notice to tell you that they used all or part of your refund to pay an outstanding tax liability.
CP53
The IRS cannot provide your refund through direct deposit, so they are sending you a refund check via mail.
CP59
The IRS sent you this notice because they have no record that you filed your prior personal tax return or returns. You need to seek a tax attorney and deal with this matter immediately.
CP71 & CP71A & CP71C & CP71D
You received this notice to remind you of a tax liability you owe the IRS. It shows the underlying tax, penalties and interest. You should seek a tax attorney as soon as possible.
CP120
You need to send the IRS documentation to prove your tax-exempt status. You NEED a tax attorney if you receive such a notice.
CP120A
Your organization’s tax-exempt status has been revoked for failure to file a Form 990 series return for three consecutive years. In addition, you are no longer eligible to sponsor a tax-sheltered annuity plan (Internal Revenue Code section 403(b) retirement plan). You NEED a tax attorney if you receive such a notice.
CP130
Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax. You should contact a tax attorney.
CP152
The IRS received your tax return.
CP153
The IRS cannot provide you with your refund through a direct deposit, so they are sending you a refund check by mail.
CP166
The IRS was unable to process your monthly payment because there were insufficient funds in your bank account. If your financial situation has changed, you need to contact the IRS and adjust your monthly payment. You should contact a tax attorney or a local Low Income Taxpayer Clinic if you are unable to pay a tax attorney.
CP178
Your tax return filing requirements may have changed: You may no longer owe excise tax. You should contact a tax attorney.
CP231
Your refund or credit payment was returned to the IRS and you need you to update your address with the IRS.
CP259
The IRS has sent you this notice because their records show you did not file the required business tax return identified in the notice. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259A
The IRS sent you this notice because their records show you did not file a required Form 990/990-EZ, Return of Organization Exempt From Income Tax. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259B
The IRS sent you this notice because their records show you didn’t file a required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259C
The IRS sent you this notice because their records show you are presumed to be a private foundation and you didn’t file a required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259D
The IRS sent you this notice because their records show you did not file a required Form 990-T, Exempt Organization Business Income Tax Return. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259E
The IRS sent you this notice because their records show you did not file a required Form 990-N, e-Postcard. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259F
The IRS sent you this notice because their records show you did not file a required Form 5227, Split-Interest Trust information Return. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259G
The IRS sent you this notice because their records show you did not file a required Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP259H
The IRS sent you this notice because their records show you are a tax-exempt political organization and you did not file a required Form 990/990-EZ, Return of Organization Exempt From Income Tax. You should file the return immediately, or contact a tax attorney if the situation warrants.
CP276A
The IRS didn’t receive a correctly completed tax liability schedule. They normally charge a Federal Tax Deposit (FTD) penalty when this happens, but decided not to do so.
• Review your tax liability schedule. Enter the liability amount for each payroll date and see if your payroll tax deposit liability matches the tax liability you reported on your tax form. When they don’t match, the IRS will reject your tax liability schedule.
• Correct the copy of your tax return and the schedule that you kept for your records.
CP276B
The IRS didn’t receive the correct amount of tax deposits. They normally charge a Federal Tax Deposit penalty when this happens, but decided not to do so.
• Review your records to see if you are paying your current payroll taxes on time.
• Correct the copy of your tax return and the tax liability schedule that you kept for your records.
• For either a quarterly or an annual filer, a total tax liability of $50,000 or less means you can make your federal payroll tax deposits monthly. A tax liability greater than $50,000 means you have to make semiweekly payroll tax deposits.
CP501
You have a balance due (money you owe the IRS) on one of your tax accounts. You should retain a tax attorney at this time unless you agree with the tax liability and intend to pay it in full. The IRS will not simply go away if you do not deal with this notice.
CP503
The IRS has not heard from you relating to the CP501, and you still have an unpaid balance on one of your tax accounts. If you have ignored the first notice, it is time to deal with this and contact a tax attorney and negotiate with the IRS while there is still ample goodwill between the taxpayer and the IRS.
CP504
You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe. This is not significant from a levy perspective in a State like Washington with no tax refunds, but it means the taxpayer is running out of time to deal with the matter before being levied or garnished.
CP504B
You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) certain property or rights to property and apply it to pay the amount you owe. You absolutely need to contact a tax attorney at this time or you risk losing your last chance to stop the IRS before they start to actively levy your bank accounts and garnish your wages.
CP521
This notice reminds you that you have an installment agreement payment due. You should send your payment immediately and stay current with your installment agreement. If you cannot make the payment, you will need to contact the IRS and explain your situation, or retain a tax attorney to do so for you.
CP523
This notice informs you that the IRS intends to terminate your installment agreement and seize (levy) your assets. You have defaulted on your agreement. You need to seek a tax attorney immediately.
CP565
Notice that the IRS gave you an Individual Taxpayer Identification Number (ITIN).
CP566
The IRS needs more information to process your application for an Individual Taxpayer Identification Number (ITIN). You may have sent an incomplete form. You may have sent the wrong documents.
CP567
The IRS rejected your application for an Individual Taxpayer Identification Number (ITIN). You may not be eligible for an ITIN. Your documents may be invalid. The IRS may not have received a reply when we asked for more information. You should retain a tax attorney if you intend to continue to pursue an ITIN.
CP2005
The IRS accepted the information you sent them, and they are not going to change your tax return. They have closed their review of it. You should seek a tax attorney if you intend to pursue the matter further.
CP2006
The IRS received your information. They will look at it and let you know as to what they are going to do.
CP2057
The IRS received information not reported on your tax return. If this is correct, you must amend your tax return. If you have any reasonable trepidation, you should immediately contact a tax attorney.
CP2501
The IRS has received information not reported on your tax return. If this is correct, you must amend your tax return. If you have any reasonable trepidation, you should immediately contact a tax attorney.