Mistakes happen. Unfortunately, sometimes they happen when we pay our taxes. Entering transposed numbers, reading the wrong line from a form, or simple addition errors can all cause inadvertent errors on your tax return. After the IRS receives your return, they use a combination of random sampling, computer verification, and comparing your submitted information to information submitted by your employer and financial institutions to verify the data entered on your return. If they find an error, you may receive a CP11 Notice from the IRS.
What is a CP11 Notice from the IRS?
The IRS issues a CP11 notice to notify you that it adjusted your tax return, and you now have a balance due. The IRS typically does this when they believe you have miscalculated something on your tax return.
What Should You Do Next?
When you receive a CP11 notice, you should read it carefully to see where the IRS recalculated your return. You then have a couple of options:
- If you agree with the IRS's changes, you can correct your copy of your tax return and keep it in your records. Then, you can pay the amount due with the coupon enclosed by the IRS.
- If you agree with the IRS, but you can't pay the amount due in full, you can contact the IRS to set up a payment plan. However, the IRS will assess penalties and interest if you don't pay in full by the date included on the CP11 notice.
- If you don't agree with the IRS changes, you should contact an experienced tax attorney right away. You and your attorney must notify the IRS of your dispute within 60 days of the date on the CP11 notice.
If you don't notify the IRS within 60 days and don't pay, your account could end up in collections, and you could face additional interest and penalties.
Hire a Skilled Tax Attorney
If you've received a CP11 notice from the IRS notifying you of changes to your tax return and a balance due, this isn't something you should try to figure out on your own. A CP11 notice, particularly if you don't agree with the IRS's changes, can affect any tax audits or appeals that you're currently involved in. You need experienced tax guidance and advice as soon as possible. If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.