If you have received a CP102 notice in the mail, the IRS is notifying you of changes they made to your return because they believe there was a miscalculation. As a result of this, you owe money on your taxes.
Here is what you need to do:
– Read this notice very carefully as it details what changes were made and why you now owe money.
– Check the numbers listed on the notice with your tax return and ensure everything is correct.
– Pay the amount owed by the date listed on your notice, and if you are unable to pay the amount in full by that date you may be able to make payment arrangements.
– If you disagree with the changes made by the IRS, contact them within 60 days of the date on your notice.
– If you agree with the changes, amend your copy of the return for your records.
Frequently asked questions about CP102:
Who do I contact for details about what caused my tax return to change?
For specific information about your tax return, you should contact the number listed on your notice.
Who do I contact if I disagree with the changes made?
Contact the IRS at the toll free number listed on the top right corner of your notice. If you contact the IRS in writing within 60 days of the date listed on your notice they will reverse the charge on your account. If you do not have substantial evidence to justify the reversal of the changes and they believe the changes are in error, they will forward your case for audit. This gives you formal appeal rights, including the right to appeal the decision in tax court before you have to pay the penalty. If your case is forwarded, the audit staff will contact you within 5-6 weeks to explain in detail both the audit process and your rights.
If you do not contact the IRS within 60 days of receiving this notice, you lose your rights to appeal their decision before paying the tax. The change cannot be reversed and you must pay the additional tax, and then you can file a claim for a refund. If you file this refund claim, you must submit it within three years of the date you filed the return, or within 2 years of the date of your last payment for this specific tax.
What are my options if I can’t pay the full amount I owe?
If you are unable to pay the full amount due, you may be able to coordinate a payment plan with the IRS.
Am I charged interest on the amount I owe?
No you are not, as long as you pay the full amount due by the date listed on the payment coupon. Interest begins accruing on the unpaid balance after the date listed.
Will I be penalized for the unpaid amount?
Yes, a late payment penalty will be charged to your account. You can contact the IRS at the number listed on the notice to set up a payment plan if you are unable to pay the amount because of circumstances out of your control. Contact the IRS and explain your situation, and they may be able to remove the penalty.
Please keep in mind the information and advice presented in this blog is not intended to be used as formal legal advice. Contact a tax professional for personalized tax advice pertaining to your specific situation. While we try and answer all parts of the question when we write our blogs, sometimes there may be some left unanswered. If you have any questions about your problems with the IRS, SBOE, FTB, or BOE, or tax law in general, call RJS Law at (619) 595-1655.