A CP114 notice means the IRS changed your excise tax return because it believes there was a miscalculation. You now have an overpayment on your account.
Federal excise tax is generally reported on Form 720, Quarterly Federal Excise Tax Return. Publication 510, Excise Taxes, covers the rules, including fuel tax credits and refunds.
What to Do
- Read the notice carefully. It explains the changes to your tax account.
- Compare its figures with your excise tax return.
- If you agree, correct the copy of the excise tax return you kept for your records.
If you haven't already received it, a refund of the overpayment should arrive shortly, as long as you don't owe other amounts the IRS is required to collect.
If You Disagree
Contact the IRS within 10 days of the notice date. Call the number on your notice or write. The IRS may be able to reverse the changes.
Excise returns can involve many line items. Identify exactly which lines the IRS changed and pull the records behind each one. If you write, keep a copy and send it by certified mail.
Why Check It
An overpayment is usually welcome. Still, the corrected figures become the IRS's version of your return. Make sure they match your records, and update your own copy so the two line up.
Next Time
Consider filing your excise tax returns electronically. Filing online can help you avoid mistakes.
For questions about what caused the change, call the number on your notice. You can authorize a representative with Form 2848.
If you received a CP114 notice and want help reviewing the change, call us at (813) 229-7100.