August 24, 2020
IRS Adjusted Refund Letter CP24
IRS Adjusted Refund Letter CP24
The IRS Changed Your Tax Return Refund Amount
It’s a sunny day, you’re feeling good because you filed your taxes and know there is a refund coming your way. You check the mail and, gasp, find there is a letter from the IRS. You sit down before opening thinking it’s going to be bad and it’s a letter informing you the IRS has changed your tax return amount. Oh no, you think as you run around trying to find your recent return and start googling why this is happening. The important thing is, do not panic. It’s most likely a simple error than can be fixed.
Why was I notified by the IRS?
The IRS should have stock in paper companies as they send more letters to Americans for a variety of different reasons. Some are merely notifying you of a simple change, such as a math error or dependent question, or there is information missing and to please provide.
For example, if you are in receipt of a CP12 letter, this notice is informing you the IRS made a correction to your tax return in your favor. So, your refund will be increased, or if you thought you needed to pay, instead you will receive a refund.
In another example, if you are in receipt of a CP42 letter, this notice is informing you that your refund was used to pay your spouse’s past due debt. This could mean, before you were married, your spouse had tax debt and it has not been paid in full. Therefore, if you filed as Married Filing Joint, all or part of the refund was used. In this case, you will want to research Injured Spouse, Form 8379.
Understanding your notice
If you do receive a notice from the IRS informing, they are adjusting your refund, it’s important to read the entire notice as they will state the reason the notice is being sent. Before you call or begin reviewing your return, you should look for the following on the notice:
- What line item on the return are they wanting to make changes
- What information is the IRS asking you to provide
- Why does the IRS believe this adjustment should be made?
- Why would the IRS need your information if you believe it’s on file previously?
- When is the due date to remit a reply, if necessary?
As mentioned, the IRS sends notices for a variety of reasons. They know this and provide a lot of information on their website. Simply visit www.irs.gov and type in your notice number found in the top right corner. It will provide an explanation and what to do next. As mentioned on their website, the IRS sends notices and letters for the following reasons:
- You have a balance due.
- You are due a larger or smaller refund.
- We have a question about your tax return.
- We need to verify your identity.
- We need additional information.
- We changed your return.
- We need to notify you of delays in processing your return.
In addition, they provide their contact phone number on the top right-hand corner of the notice or letter. Typically, you only need to contact them if you don’t agree with the information, if they requested additional information, or if you have a balance due. You can also write to them at the address provided in the notice or letter. If you write, allow at least 30 days for our response.
Next Steps
As you’ve probably reviewed your notice and understand what is needed, or not needed, you should feel more comfortable in providing a response. However, if you have any questions or not comfortable in handling your notice, it’s best to contact a tax resolution specialist. Also, the IRS also provides the following steps to help taxpayers along:
Read
Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If we changed your tax return, compare the information we provided in the notice or letter with the information in your original return.
Respond
If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply:
- to minimize additional interest and penalty charges.
- to preserve your appeal rights if you don’t agree.
Pay
Pay as much as you can, even if you can’t pay the full amount you owe. You can pay online or apply for an Online Payment Agreement or Offer in Compromise. Visit our payments page for more information.
Keep a copy of your notice or letter
It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date.
Corrections to a tax return
This is life and mistakes can happen. If you find a mistake on your return, it could be best to file an Amended Return. However, before doing so, it’s best to contact the tax professional who originally prepared your return. If you prepared the return yourself, you may want to contact a firm specializing in tax preparation. Reason being, filing an amended return could put you in a position where you owe penalties for failure to pay or extend a statute when it may not be necessary to do so.
Can I receive a fake IRS letter?
Unfortunately, this is all too common in these times. There are folks out there who have been scammed out of hard-earned money believing the notice was sent by the IRS. When in doubt, contact the IRS. In addition, to verify it is the IRS contacting you, they have listed this information also found on the website:
Go to IRS.gov and search on the letter, notice, or form number. Please be aware fraudsters often modify legitimate IRS letters and forms. You can also find information at Understanding Your Notice or Letter or by searching Forms and Instructions. For additional information please see “How to know it’s really the IRS calling or knocking on your door”.
If it is legitimate, you'll find instructions on how to respond. If the completion of a form is required and it’s provided by a questionable contact, you should verify the form is identical to the same form on IRS.gov by searching Forms and Instructions.
If you don't find information on our website or the instructions are different from what you were told to do in the letter, notice or form, please use the appropriate online resources.
Once you have determined that it is not legitimate, report the incident to TIGTA and to us at [email protected].
Conclusion
In the end, if you filed a return with a minor calculation error the IRS will most likely fix it for you and send a notice merely letting you know it has been fixed. If you ever have any doubt, contact the IRS or a tax professional you can trust, but in a timely manner as to not miss a deadline!
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