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CP326 notice: what it means and what to do
Got an IRS CP326 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 CP326 notice freeWhat the IRS says this notice is about
Our records indicate that there may be an error in the reported amount of alimony you received. This notice has been sent to inform you of this discrepancy and to help you verify if you reported your taxable alimony correctly.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
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
Review your 2025 Form 1040 Schedule 1 federal tax return to make sure you correctly reported your alimony income on line 2a. If you need to adjust your alimony reporting:
- File an amended return . If you filed electronically, you may file your amended return electronically. You can get help at an IRS Taxpayer Assistance Center .
- Share this letter with anyone helping you with preparing your returns.
- If you file an amended federal tax return, you may also need to file an amended state or local tax return.
Failure to review and address any incorrect or incomplete information could result in additional communication from the IRS.
Common questions
When is a payment considered alimony?
A payment is alimony or separate maintenance if all the following requirements are met:
- The spouses don't file a joint return with each other
- The payment is in cash (including checks or money orders)
- The payment is to or for a spouse or a former spouse made under a divorce or separation instrument
- The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.)
- There's no liability to make the payment (in cash or property) after the death of the recipient spouse
- The payment isn't treated as child support or a property settlement
- The divorce or separation agreement does not designate the payment as not includable in gross income of the payee spouse and not allowable as a deduction to the payer spouse
What forms of payment are excluded from alimony?
- Child support
- Noncash property settlements, whether in a lump-sum or installments
- Payments that are your spouse's part of community property income
- Payments to keep up the payer's property
- Use of the payer's property
- Voluntary payments (that is, payments not required by a divorce or separation instrument)
Child support is never deductible and isn't considered income. Additionally, if a divorce or separation instrument provides for alimony and child support, and the payer spouse pays less than the total required, the payments apply to child support first. Only the remaining amount is considered alimony.
How do I report my taxable alimony?
If you received amounts that are considered taxable alimony or separate maintenance, you must include the amount of alimony or separate maintenance you received as income. Report alimony received on Form 1040 or Form 1040-SR (attach Schedule 1 (Form 1040) PDF ) or on Form 1040-NR, U.S. Nonresident Alien Income Tax Return (attach Schedule NEC (Form 1040-NR) PDF ). You must provide your SSN or ITIN to the spouse or former spouse making the payments, otherwise you may have to pay a $50 penalty.
My divorce decree or separation agreement occurred in 2019; am I required to report alimony as additional income?
No, the payee spouse is not required to report alimony or separate maintenance income resulting from a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification.
My divorce decree or separation agreement occurred before 2019 but was later modified, am I required to report alimony as additional income?
If the divorce degree or separation instrument was executed before 2019 but later modified with the modification expressly stating the repeal of the deduction for alimony payments , you are not required to report alimony as additional income.
Helpful information
Follow the links below to read more about topics related to alimony and separate maintenance:
- Tax topic no. 452, Alimony and separate maintenance
- Publication 504, Divorced or Separated Individuals
- Tax considerations for people who are separating or divorcing
- A change in marital status affects tax filing
- Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent
Follow the links below to read more about filing an amended return or make a payment.
- Form 1040X Frequently asked questions
- IRSvideos: Amending a Return (youtube.com)
- Make a payment
- Get help with tax debt
- Online account for individuals