What This Notice Means

The IRS found a miscalculation on your tax return and changed it. As a result, you have a balance due of less than $1. You don't have to pay an amount under $1.

This notice is used for several types of returns. The materials the IRS pairs with it cover Form 2290 (heavy highway vehicle use tax), Form 706 (estate tax), Form 709 (gift tax), Form 730 (monthly tax on wagers), and Form 11-C (occupational tax and registration for wagering). Your notice identifies which return was changed.

What to Do

  • Read the notice carefully.
  • Compare the figures on the notice with your tax return.
  • If you agree, you don't need to do anything. Update the copy of the return you kept for your records.
  • If you disagree, contact the IRS within 30 days of the date of the notice.

If You Disagree

Call the toll-free number on your notice, or write to the address on the contact stub, within 30 days of the notice date. The IRS can reverse the change if your response provides additional information that justifies a reversal.

If you write, include the contact stub, a short explanation of what you believe is correct, and copies of the records that prove it. Keep copies of everything. Send it by certified mail.

Estates and Executors

If this notice relates to an estate tax return, the executor or administrator handles the response. Publication 559, Survivors, Executors, and Administrators, covers those duties. If someone else is handling the matter for the estate or for you, they can be authorized with Form 2848.

Next Time You File

Review your return for accuracy before you file. Consider filing electronically where it's available. Filing online helps you avoid math mistakes.

If you received a CP125 notice and have questions about the change, call us at (813) 229-7100.