IRS Notice CP21B: Owed Refund After Tax Return Adjusted

IRS Notice CP21B: Owed Refund After Tax Return Adjusted

If you file an amended return or call the IRS to make changes to your return, they will send you notice CP21B when you are owed a refund. CP21B shows both your tax return changes and the amount of your new tax refund.

What Is IRS Notice CP21B?

IRS notice CP21B is a letter from the IRS to inform taxpayers of a change to their tax return which resulted in a refund. This notice contains important information, including what the IRS changed and your refund amount.

CP21B includes the following sections:

  • Header: This section contains the notice number and date, tax year under review, taxpayer’s SSN, and IRS contact number.
  • Explanation: This section provides reasons for the IRS adjustments and how that resulted in a refund.
  • Response: This section outlines what to do if you have questions or do not agree with the IRS changes. Usually, you are required to contact the IRS using the phone number listed in the header.

How Long Will It Take to Get My Refund After Receiving IRS Notice CP21B?

If you agree with the changes made by the IRS, you will do nothing else but wait for your refund to arrive. You should receive your refund within three weeks of receiving CP21B. In some cases, you’ll receive it as soon as two weeks.

Your notice outlines specific steps to take if you do not receive your refund within this time. Note that if you owe back taxes, the IRS can use your refund to settle tax debt. In this case, the IRS will send a separate CP49 notice. This notice lets you know how much of your refund will be applied to your back taxes.

What Should I Do If I Disagree with the IRS CP21B Changes?

If you disagree with the CP21B changes, contact the IRS using the phone number listed in the notice. An IRS representative can provide more specific information about the changes and refund amount. When you call the IRS, you’ll need to be able to reference both your tax return and CP21B notice. Alternatively, you can contact the IRS by mail if you disagree.

If you send a dispute letter, include the following:

  • SSN
  • Tax year
  • Form number (1040)

If you fail to respond to the CP21B notice by phone or mail, the IRS assumes you agree with the changes made. They will go ahead and process your refund.

How Can I Find Out Why the IRS Changed My Return If I Didn’t File an Amended Return?

If you did not amend a return and received a CP21B notice, call the number listed on the top right of your letter. An IRS representative will review your tax account and provide the reasons for why the IRS made changes to your original return.

Can I Still Submit an Amended 1040 Return If I Already Received CP21B?

Yes, you can still submit an amended federal return if you received CP21B. However, before you do so, first contact the IRS to determine whether you are eligible.

Each year, the IRS sends taxpayers notices regarding their tax accounts. These notices differ based on the specific tax issue. One such notice is CP21B. If you have received this notice but need to know what to do next, schedule a free call or take our quick, free evaluation online.

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