CP11 Notice From IRS: Adjusted Tax Return Balance Due

CP11 Notice From IRS: Adjusted Tax Return Balance Due

The IRS sends a CP11 notice when there is a miscalculation on your tax return resulting in a lower tax liability being reported than what you owe. The CP11 notice informs you that the IRS adjusted your tax return and you now owe the IRS money.

Here are the answers to the most asked questions about IRS notice CP11 and what to do if you receive it:

What Is a CP11 Notice?

A CP11 notice is a letter the IRS sends after adjusting an individual’s tax return, and those changes result in the taxpayer owing money. When the IRS determines that a miscalculation was made when filing a tax return, whether intentional or unintentional, it will often adjust the tax return to reflect the correct values.

When this tax return change results in an unpaid tax balance, the IRS sends a CP11 notice to the taxpayer.

Why Did I Receive a CP11 Notice From the IRS?

You received a CP11 notice from the IRS because it adjusted your tax return after you filed it, and the changes resulted in a tax balance due. The IRS corrected your tax return because the original tax return you filed contained a miscalculation that initially lowered your tax liability.

Does a CP11 Notice Show Changes the IRS Made to My Tax Return?

Yes, your IRS CP11 notice lists the changes made by the IRS and an explanation of why those changes to your tax return were made. If you disagree with your adjusted tax return or the reasoning behind the IRS changes, your notice CP11 contains a toll-free number you can call to speak with an IRS representative.

What Should I Do If I Disagree with My CP11 Notice?

If you disagree with the changes to your tax return made by the IRS as reflected on your IRS CP11 notice, you can dispute them via phone or mail. To initiate a dispute by phone, call the toll-free number on your CP11 notice within 60 days. (Your IRS notice CP11 will contain the exact due date; use this date instead of assuming the 60 days start the day you received your notice.)

To dispute by mail, send an explanation of why you disagree with the IRS’s recalculation to the address listed on your CP11, along with a copy of the CP11 notice itself and any evidence you have to support your position.

What Happens If I Don’t Respond to My CP11 Notice?

If you do not respond to your CP11 notice, you will owe the tax balance due listed on your letter. If you do not pay your CP11 balance by the due date, the IRS will assess a penalty for nonpayment, and you will begin accruing interest on your unpaid taxes. The IRS may also pursue more aggressive collection tactics, up to and including wage garnishment and/or tax liens.

Will the IRS Charge Interest and Penalties on My CP11 Notice Tax Balance?

If you pay the tax balance due by the CP11 notice due date, you will not incur any additional charges. Once this CP11 due date passes, however, any remaining unpaid balance is subject to interest and penalties.

What Do I Do If I Receive a CP11 Notice and Can’t Pay the IRS?

If you cannot afford to pay the tax balance due listed on your IRS CP11 notice, you can make alternative payment arrangements with the IRS Fresh Start Tax Relief Program. One option is to submit an Offer in Compromise. An OIC resolves the tax debt in the CP11 notice for a lower amount. The IRS will accept your Offer in Compromise if you have a legitimate and substantial financial hardship. Another option is to setup an IRS installment agreement and make monthly payments until your taxes are paid.

Is There a Difference Between a CP11 Notice and a CP12 Notice?

A CP11 notice and CP12 notice both inform you of changes made by the IRS to your tax return. However, a CP12 notice often results in a higher refund amount or lower tax balance due, while a CP11 notice almost always results in a higher tax balance due.

How Can Wiztax Help?

The key is to get started. Ignoring these IRS notices makes everything more complicated. Call us today at (866) 568-4593 to learn more about how we can help (we never charge for “consultations” or “investigations”). Or start here to take our free online evaluation. Regardless, we promise to save you thousands in fees.

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