A CP101 notice means the IRS changed your return because it believes there's a miscalculation. Because of the change, you now owe money.

The notice explains why. Read it carefully and compare its figures with the return you filed. For the specific reason your return changed, call the number on your notice.

The 10-Day Window

If you disagree, contact the IRS within 10 days of the notice date. That window is short and it matters.

If you contact the IRS in writing within 10 days, the IRS will reverse the change. If you can't provide additional information that justifies the reversal and the IRS believes the reversal is in error, it will forward your case for audit. The audit staff will contact you within 5 to 6 weeks to explain the audit process.

If you don't contact the IRS within 10 days, you lose your right to appeal the decision before paying the tax. The change stays, and you must pay the additional tax. You can then file a claim for refund. That claim must be filed within three years from the date you filed the return, or within two years from the date of your last payment of this tax.

If You Agree

Correct the copy of the return you kept for your records. Pay the amount due by the date on the payment coupon.

If You Can't Pay

Set up a payment plan to pay over time. Know the cost:

  • Interest: None if you pay in full by the coupon date. After that, interest accrues on the unpaid balance until it's paid in full.
  • Penalty: If you can't pay in full, you'll get a late payment penalty. If circumstances beyond your control are the reason, call the number on your notice by the payment due date. Depending on your situation, the IRS may be able to remove the penalty.

Protect Yourself

Keep a copy of the notice and anything you send. If you respond in writing, use certified mail so you can prove you met the 10-day deadline. Next time, file electronically if you can. It helps avoid math errors.

If you received a CP101 notice and disagree with the change or can't pay, call us at (813) 229-7100.