CP104 is a business excise tax notice. The IRS found a miscalculation on your excise tax return, made changes, and you now have a balance due. The notice explains why you owe.
CP104 is not an address change notice. If you were expecting confirmation of a new address, this is something different.
What to Do
- Read the notice carefully. It explains the changes and the amount due.
- Compare the figures on the notice with your excise tax return.
- If you agree, correct the copy of your excise tax return that you kept, and pay the amount owed by the due date on the notice.
- If you disagree, call the number on your notice or write to the IRS within 10 days of the notice date. The IRS may be able to reverse the changes.
Ten days is short. Don't let this notice sit.
If You Can't Pay in Full
Contact the IRS to make payment arrangements. You can apply online for a payment plan, including an installment agreement, or call the number on your notice to discuss options.
Interest and Penalties
If you pay the full amount by the due date on the notice, you won't be charged interest on it. After that date, interest accrues on the unpaid balance.
If you can't pay the full amount, you'll be charged a late payment penalty. If circumstances beyond your control are the reason you can't pay, call the number on your notice. If you contact the IRS by the payment due date, it may be able to remove the penalty, depending on your situation.
Preventing a Repeat
Filing excise tax returns electronically helps avoid calculation mistakes. Publication 510, Excise Taxes, covers the rules for figuring the tax. Keep a corrected copy of this return so next quarter's figures start from the right numbers.
If your business received a CP104 and the excise tax changes don't look right, call us at (813) 229-7100.