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CP123 notice: what it means and what to do
Got an IRS CP123 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 CP123 notice freeWhat the IRS says this notice is about
We made changes to your railroad retirement tax return because we believe there was a miscalculation. You now have a balance due of less than $1.
What you need to do
- Read the notice carefully.
- Compare the figures on the notice with your railroad retirement tax return.
- Contact us within 30 days of the date of your notice if you disagree with the changes we made.
- Correct the copy of your railroad retirement tax return that you kept for your records if you agree with our changes.
- You don’t have to pay if you owe less than $1.
Your deadline
The IRS page for this notice mentions 30 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
How can I find out what caused my tax return to change?
Call us at the telephone number listed on your notice for specific information about your tax return.
What should I do if I disagree with the changes you made?
Call us at the telephone number listed on your notice or write to us within 30 days of the date of the notice. We may be able to reverse the changes.
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