IRS Tax Notices For Adjustments Due to Refund Calculation Errors

IRS Tax Notices For Adjustments Due to Tax Liability or Refund Calculation Errors – CP11, CP12, CP13, And CP14. While the IRS sends lots of notices out during the year, common ones related to IRS adjustments made to your tax return are in the CP11 to CP14 range. (Similar post: IRS Code 846 On Tax Transcript)

These notices are mainly related to calculation errors found in your tax return that the IRS was able to adjust. As a result, your refund amount may change or you may owe additional taxes.

Below is a summary of these IRS notices (or letters). Note the subtle difference in messaging.

CP11The IRS has made changes to your filed tax return due to an identified miscalculation. You will likely owe money on your taxes as a result of these changes if your refund cannot be offset
 CP12The IRS has corrected one or more mistakes on your tax return. The notice will state if you are now either due a refund or your original refund amount has changed
 CP13The IRS changed your filed return because of a miscalculation. You are not due a refund nor do you owe an additional amount (liability) due. Your IRS account balance is zero
CP14This is sent because you owe money on unpaid taxes and you now have a tax liability with the IRS that needs to be paid. It could be due to a mistake with your filing that was picked up by the IRS during processing your return

What to do if you get one of these notices? ( CP11, CP12, CP13, And CP14)

While it is natural to panic or gets stressed when receiving one of these letters from the IRS, the main thing to realize is that you won’t suddenly have a looming tax obligation or that the cops will be at the door to get the federal monies you may owe. (Similar post: IRS Tax Transcript Code 841 Refund Cancelled )

In most cases the notice will just provide details on what actions the IRS has taken and if there is anything pending, including additional payments, from your end. The main thing to do is to carefully review the notice carefully and follow the actions or instructions noted on the letter.

If you are unsure of the adjustment do some research online (on reputable sites) and/or talk to a tax professional to get some help if the amounts are large. You can also call the toll-free IRS number listed on the notice.

Generally, you won’t have to do anything if you agree with the changes made by the IRS and no additional payments are due from you. Just file away the notice for next year’s tax return.

You can also appeal in writing or call the IRS, generally within 60 days, if you DO NOT agree with the adjustments made. Instructions on how to do this will be listed on the notice you receive.

What if I owe taxes or have an additional liability?

Per the TAS, if the taxpayer does not contest the notice within the 60-day time period, the IRS will move toward its normal collection procedures if the assessment is not paid by the tax filer. They may also retain the refund not paid due to the math error adjustment. 

If you agree with the payment, but cannot make it you can enter an IRS payment plan to make small payments over time until your IRS debt is exhausted. You can do this online using the IRS’ Online Payment Agreement tool.

You may also have to pay interest and penalties for taxes that are overdue.

What if my refund has increased?

If your refund has increased you will normally see this in a CP 12 notice. If you agree with the changes made, no action is needed and you will receive your additional refund check within 6 weeks. This assumes no other IRS obligations or debts which could offset your additional refund payment.

You won’t need to file an amended return following IRS adjustments, but you should keep a note of the changes made in case you need this for your following year’s tax filing.

Understanding your CP11 Notice

What this notice is about – IRS has made changes to your return because we believe there’s a miscalculation. You owe money on your taxes as a result of these changes.

What you need to do

  • Read your notice carefully. It will explain the changes we made and why you owe money on your taxes.
  • If you agree with the changes we made.
    • Pay the amount owed by the date on the notice.
    • Visit the Payments webpage for electronic payment options.
    • Make payment arrangements if you can’t pay the full amount you owe. You can do this online using the Online Payment Agreement tool.
    • Correct the copy of your tax return that you kept for your records, but do not send it to us.
  • If you don’t agree with the changes we made, contact us within 60 days from the date of your notice, and see frequently asked questions below.
    • By telephone: Call us at the telephone number shown on your notice. The fastest way to resolve many return errors is by telephone. Some cases require additional information that you may provide verbally. If we need a missing or corrected form or document, you can fax it to us while on the telephone. Either way, we may be able to correct your account immediately.
    • By mail: Please include a copy of the notice along with your correspondence or documentation, and allow 30-60 or more days for a resolution.

Understanding your CP12 Notice

The IRS corrected one or more mistakes on your tax return. A CP12 Notice is sent when the IRS corrects one or more mistakes on your tax return which either result in a different refund amount, or in an overpayment when you thought you owed.

What does this mean to me? The IRS received your individual income tax return; the amount of your refund has now been adjusted. A CP12 Notice is issued when there are mistakes on your return that require correction and an original refund amount is changed.

How did I get here? You submitted your income tax return with one or more mistakes that needed to be corrected. As a result:

  • The refund amount is different from the one you expected, or
  • You have a refund when you thought you owed money or had an even balance.

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