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CP101 notice: what it means and what to do
Got an IRS CP101 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP101 notice freeWhat the IRS says this notice is about
We made changes to your return because we believe there's a miscalculation. You owe money on your taxes as a result of these changes.
What you need to do
- Read your notice carefully. It will explain why you owe.
- Compare the figures on the notice with your tax return.
- Pay the amount you owe by the date on the notice's payment coupon.
- Make payment arrangements if you can't pay the full amount you owe.
- Contact us within 10 days of the date of your notice if you disagree with the changes we made.
- If you agree with our changes, correct the copy of your tax return that you kept for your records.
Your deadline
The IRS page for this notice mentions 10 days. Always use the date printed on your own notice.
What to check before you answer
You have 60 days to disagree
If you disagree with the change and ask in writing within 60 days of the notice date, the law requires the IRS to reverse it. If the IRS still disagrees, it must then use the regular process, which keeps your appeal rights.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
Common questions
Please contact us at the number listed on your notice for specific information about your tax return.
If you disagree, contact us at the toll-free number listed on the top right corner of your notice. If you contact us in writing within 10 days of the date of this notice, we’ll reverse the change we made to your account. However, if you can’t provide us additional information that justifies the reversal and we believe the reversal is in error, we’ll forward your case for audit. After we forward your case, the audit staff will contact you within five to six weeks to fully explain the audit process. If you don’t contact us within 10 days, you’ll lose your right to appeal our decision before payment of tax. If you don’t contact us within 10 days, we won’t reverse the change and you must pay the additional tax. You can then file a claim for refund PDF . You must submit the claim within three years from the date you filed the tax return, or within two years from the date of your last payment for this tax.
You can set up a payment plan to pay over time.
Not if you pay the full amount you owe by the date on the payment coupon. However, interest accrues on the unpaid balance after that date until you pay the balance in full.
Yes, you will receive a late payment penalty. You can contact us at the number given on your notice if you can't pay the full amount shown in your specific notice because of circumstances beyond your control. Contact us by the due date of your payment and, depending on your situation, we may be able to remove the penalty.
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