What This Notice Means

A CP130 tells you that your tax return filing requirements may have changed. Specifically, you may no longer need to pay the Alternative Minimum Tax (AMT). The notice is aimed at corporations and explains the steps to take depending on whether you qualify for the AMT exemption.

What to Do

  • Read the notice carefully. It lays out the next steps based on whether the corporation qualifies.
  • If the corporation qualifies and paid AMT it didn't owe, consider filing an amended return on Form 1120-X, Amended U.S. Corporation Income Tax Return.

How to File the Amended Return

Write "AMT-EXEMPT" at the top of the Form 1120-X. Send it to the same IRS address where you mailed the original return. Keep a complete copy and use certified mail.

Estates and Trusts

If you're an estate or trust and received this notice, the exemption doesn't apply to you. Estates and trusts are not corporations and are not exempt from the AMT under this notice.

Sending Notices to Your Accountant

If someone else handles the corporation's taxes, you have two tools:

  • Form 2848, Power of Attorney and Declaration of Representative, authorizes someone to contact the IRS on the corporation's behalf.
  • Form 8822, Change of Address, is the form the IRS points to if you want future notices sent directly to your accountant.

Bottom Line

This is not a bill. It's a heads-up that the corporation may have overpaid or may not owe AMT going forward. Review the corporation's returns with whoever prepares them and decide whether an amended return makes sense.

If your corporation received a CP130 notice and you want to know whether amending makes sense, call us at (813) 229-7100.