If you receive a notice from the IRS indicating that you owe more money for a tax return you already filed, it is important to read the notice carefully as it will explain the reason for the correspondence and provide instructions on how to proceed. The notice will cover a specific issue about your account or tax return, such as additional tax owed, a larger refund due, a question about your tax return, or a need for additional information.
One common type of notice is the CP2000, which is sent when the information on your tax return does not match data reported to the IRS by third parties like employers or banks. This notice provides detailed information about the discrepancies identified and steps to resolve them. It is not a formal audit notification but a request to confirm whether you agree or disagree with the proposed changes. You typically have 30 days to respond to a CP2000 notice.
If you do not respond to the initial notice, the IRS will send a follow-up notice called CP3219A, Statutory Notice of Deficiency, which explains why the IRS proposes a tax change and how it was determined. This notice also informs you of your right to challenge the decision in Tax Court.
If you receive a notice indicating identity theft, follow the instructions in the notice and contact the IRS Identity Protection Specialized Unit immediately.
For any notice received, you should:
For more information, you can visit the IRS website and look up the specific notice you received to understand the details and next steps.
Sources:
FS-2019-10
Publication 1518 (11/2012)
Publication 1582
IRM Part 4. Examining Process. Chapter 19. Liability Determination. Section 3. IMF Automated Underreporter Program
IRM Part 21. Customer Account Services. Chapter 3. Taxpayer Contacts. Section 1. Taxpayer Contacts Resulting From Notice Issuance
