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CP107 notice: what it means and what to do
Got an IRS CP107 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 CP107 notice freeWhat the IRS says this notice is about
We made changes to your tax return because we found a miscalculation. As a result of these changes, your balance due also changed.
What you need to do
- Read the notice carefully
- Compare the figures on the notice with your tax return.
- Contact us within 60 days of the date of your notice if you disagree with the changes we made. Please have your account information available when you call.
- Correct the copy of your tax return you kept for your records if you agree with our changes. Keep this notice for your records.
- Pay the amount you owe by the payment due date on the notice.
- Contact us to make payment arrangements if you can’t pay the full amount you owe. You can also read about payment options .
Your deadline
The IRS page for this notice mentions 60 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.
You may want to
Download a copy of Instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons PDF . If you need additional forms or publications, visit the Forms, instructions & publications page, or you can call 800-TAX-FORM ( 800-829-3676 ) to request them by mail.
Common questions
Does interest accrue on the money I owe?
Yes. Interest begins to accrue on the unpaid deposit amount from the day the deposit was due until the day we receive the deposit in full. Interest will begin to accrue on the penalty if you don’t pay the penalty amount within 10 days of the date of the notice.
Will I receive more than one failure-to-deposit penalty?
Maybe. When an employer fails to make a proper tax deposit, even if the failure is due to an error, we assess a 10% failure-to-deposit penalty. You may or may not have received notice of the 10% penalty before receiving this notice. If you think the penalty is an error or you believe you have reasonable cause for not making the proper tax deposit, you can ask us to remove the penalty. The penalty notice will explain your right to appeal. If you pay the unpaid tax (deposit) by the payment due date on your notice, we won’t assess any additional penalties on the amount you owe. If you don’t pay the total tax due by the notice due date, we will assess an additional 5% failure-to-pay penalty on top of the 10% failure-to-deposit penalty.
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