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CP240 notice: what it means and what to do
Got an IRS CP240 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 CP240 notice freeWhat the IRS says this notice is about
We changed your return because we found differences between your employment tax return and the income reported on your W-2, W-2G and 1099R forms.
What you need to do
- If you have a balance, pay the amount owed by the date shown on your notice.
- If you can't pay the full amount, visit our payments page for 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
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 amounts didn’t match? (updated Dec. 4, 2025)
Call us at the number listed on your notice.
Will I receive a penalty if I can't pay the full amount? (updated Dec. 4, 2025)
Yes, you could be charged a penalty. If you were charged a penalty. your notice will explain how we calculated that penalty.
Helpful information
- Publication 3498-A, The Examination Process PDF
- Form 9465, Installment Agreement Request PDF
- 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 .