Home › IRS notices › CP230 notice
CP230 notice: what it means and what to do
Got an IRS CP230 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 CP230 notice freeWhat the IRS says this notice is about
We changed your return because the amounts on your information returns don’t match those on your employment tax returns.
What you need to do
- If you have a balance due, pay the amount owed by the date shown on your notice.
- If you can’t pay the full amount, visit our payments page for more information about other ways to pay.
- If you disagree with the changes, contact us within 30 days from the date of your notice.
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
Stock, fund or crypto sales: check your cost basis
You owe tax on the gain, the sale price minus what you paid, not on the full sale price. If the notice counts the full sale price as income, send your broker statements that show what you paid. This often lowers the amount a lot.
Payment app income (Form 1099-K): check personal payments
Money from friends and family, reimbursements, and personal items sold for less than you paid are not taxable income. If the notice counts them, list them and send your records.
Retirement distribution (Form 1099-R): was it rolled over?
Money moved into another retirement account within 60 days is generally not taxable. If that is your case, send the statement that shows it.
Self-employment income (Form 1099-NEC or 1099-MISC): count your expenses
If this was business income, your business expenses lower the taxable amount. Send a Schedule C with your expenses and keep your receipts.
State tax refund (Form 1099-G)
A state tax refund is generally taxable only if you itemized deductions the year before. If you took the standard deduction, say so in your answer.
You can agree with some items and not others
The response form lets you agree with part of the changes. Explain each item you disagree with and attach a document for each one.
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
Call us at the number listed in your notice.
Yes, you could be charged a penalty. If you were charged a penalty, your notice will explain how we calculated that penalty.
Helpful information
- Form 9465, Installment Agreement Request
- Notice 746, Information About Your Notice, Penalty and Interest PDF
- Create an account to view business information, get messages and more with Business Tax Account .