What this notice means
The IRS believes there's a miscalculation on your return and corrected it. Because of the changes, you now owe money on your taxes.
The 'What we changed on your return' section explains each change. If you agree, you pay. If you disagree, you contact the IRS by the date on the notice.
Why you got it
- The IRS found what it believes is a miscalculation on your return.
- The corrections increased what you owe, or turned the refund you asked for into a balance due.
What to do now
- Read the notice, especially 'What we changed on your return,' to see what changed and how it affects what you owe.
- If you agree, pay by the date on the notice to avoid more penalties and interest. If you can't pay it all now, set up a way to pay over time.
- Correct the copy of your return that you kept, but don't send it to the IRS.
- If you disagree, call the toll-free number in the 'Where to find more information' section by the date on the notice. Many return errors get sorted out fastest by phone, and you can fax documents during the call if needed.
- If you need to make another correction to your return, file Form 1040-X.
If you don't respond
If you don't contact the IRS by that date, you lose the formal right to have the changes reversed and to appeal to the U.S. Tax Court, though the IRS will still consider documents you send later. If you don't pay in full, interest builds from the date your return was due.
Questions people ask
Will the IRS reverse the changes if I disagree?
In most cases, yes, when the changes raised what you owe or affected a refund you requested. You don't have to explain or send documents, but doing so can speed things up. If the IRS doesn't get information supporting your original return, it may send your case to audit, and someone from audit will reach out within 6 weeks.
Will I be charged interest?
Not if you pay in full by the due date on the notice. Otherwise, interest builds on the unpaid balance starting from the date your return was due.
Can the late payment penalty be removed?
If circumstances beyond your control keep you from paying in full, contact the IRS at the number on your notice by the due date. Depending on your situation, the IRS may be able to remove the penalty.