A CP102 notice means the IRS believes there's a miscalculation on your return and made changes to fix it. Those changes left you with a balance due.
First Steps
- Read the notice. It explains why you owe.
- Put the notice next to your return and compare the figures line by line.
- If the reason isn't clear, call the number listed on the notice for specifics about your return.
You Have 10 Days to Disagree
If you think the IRS got it wrong, contact the IRS at the telephone number on your notice. The deadline is 10 days from the date of the notice.
Here's how it works. If you contact the IRS in writing within 10 days, the IRS will reverse the change. If you can't back up the reversal with additional information and the IRS believes the reversal is in error, your case goes to audit. Audit staff will contact you within 5 to 6 weeks to explain the process.
Miss the 10 days and you lose your right to appeal before paying the tax. The change stands and you have to pay. Your remaining option is a claim for refund, 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 write, keep a copy and send it by certified mail.
If You Agree
Update the copy of the return you kept. Pay the amount owed by the date on the payment coupon.
If You Can't Pay in Full
You can set up a payment plan and pay over time. Two costs to know about:
- No interest is charged if you pay the full amount by the coupon date. After that date, interest accrues on the unpaid balance until it's paid in full.
- If you can't pay the full amount, a late payment penalty applies. If circumstances beyond your control caused the problem, contact the IRS at the number on your notice by the payment due date. The IRS may be able to remove the penalty, depending on your situation.
Filing electronically next time can help you avoid mistakes like this one.
If you received a CP102 notice and need help disputing it or paying it, call us at (813) 229-7100.