The CP10A is a math error notice. The IRS found a mistake involving the Earned Income Credit (EIC) on your return and corrected it. That correction reduced your overpayment. Because you asked to have some or all of your overpayment applied to next year's estimated tax, the amount carried forward is smaller than you requested.
It is not a penalty waiver. It is the EIC version of the CP10.
What This Notice Means
- Your EIC was changed, and that changed your overpayment.
- Less money was credited to next year's estimated tax than your return requested.
- If any refund is still due, it is issued separately.
What to Do
- Read the section of the notice that explains what was changed. Compare it to your return.
- Check the EIC information you reported: names, Social Security numbers, and dates of birth for you, your spouse, and any qualifying children must match Social Security Administration records.
- Recalculate next year's estimated tax payments. You now have less credit going in, so you may need to pay more through Form 1040-ES or withholding to avoid an underpayment penalty.
- Correct your copy of the return. Don't send it to the IRS.
If You Disagree
Contact the IRS at the number on your notice by the date shown. Math error changes can generally be reversed if you ask within 60 days of the notice date. If the IRS still believes the change is right after reversing it, the issue goes through the regular audit process, which gives you formal appeal rights. If you miss the window, you can still file an amended return or claim, but you lose your formal right to have the change reversed and your right to appeal it to the U.S. Tax Court.
Keep a copy of the notice and anything you send.
If the IRS changed your Earned Income Credit and you think it's wrong, call us at (813) 229-7100.