What This Notice Means

CP188 tells a business that the IRS is delaying the refund of an overpayment on the return shown on the notice. Before it releases the money, the IRS wants to make sure the business doesn't owe other taxes.

CP188 is the business version of CP44, the notice individuals get in the same situation. It is not an audit and it is not a request for documents.

Why It Happens

The IRS has flagged the account because there may be another balance the credit should be applied to. That includes balances recorded outside the IRS's regular business account records. The refund stays on hold until that is sorted out.

What to Do

Nothing. You don't need to respond.

What Happens Next

  • If the business doesn't owe other tax or debts the IRS is required to collect, you should receive the refund, plus any interest, within 6 to 8 weeks.
  • If the IRS determines the business owes other taxes, it applies the overpayment to that debt. You'll get a notice explaining how the money was applied, and a check for whatever is left, if anything.

While You Wait

  • Think about any other federal tax balances tied to the business, including other tax periods and other types of federal tax.
  • Keep the CP188 with the return it relates to.
  • If 8 weeks pass with no refund and no follow-up notice, call the number on your notice.

If the Refund Gets Applied

Check the follow-up notice carefully. If the IRS applied the refund to a balance you don't believe the business owes, contact the IRS at the number on that notice and have your records ready. If a balance remains after the refund is applied, deal with it through payment or a payment plan before it moves further into collection.

If your business refund was held and applied to a balance you didn't expect, call us at (813) 229-7100.