A CP117 notice means the IRS changed your Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, because it found a miscalculation. As a result, you have an overpayment on your account.

What to Do

  • Read the notice carefully. It explains the changes.
  • Compare its figures with your Form 1042.
  • If you agree, correct the copy of the return you kept and keep the notice with your records.
  • If you disagree, contact the IRS within 10 days of the notice date. Have your account information ready when you call.

When Will You Get the Refund?

You should receive a refund check within 4 to 6 weeks, as long as you don't owe other taxes or debts the IRS is required to collect.

Interest on the Refund

Your refund may include interest. Interest you receive on a tax refund is taxable income in the year you receive it. Account for it when you prepare that year's return.

If You Disagree

Ten days is not much time. Pull the return, your Forms 1042-S, and your deposit records as soon as the notice arrives. Identify exactly which figures the IRS changed and whether its numbers or yours are right. If you write, keep a copy and use certified mail.

Next Time

Consider filing electronically. Filing online can help you avoid mistakes. Review the return for accuracy before you file. Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, covers the withholding rules behind Form 1042.

For questions about the change, call the number on your notice. A representative authorized with Form 2848 can contact the IRS for you.

If you received a CP117 notice and want help reviewing the change, call us at (813) 229-7100.