The CP210 is the business equivalent of the CP21A. The IRS made changes to your business tax account and the result is a balance due. The changes could stem from an employment tax audit, a correction to reported wages or withholding, a penalty assessment, or an adjustment to credits claimed.
Common Triggers
Employment tax adjustments are the most common cause of CP210 notices. The IRS compared the wages and withholding reported on your employment tax returns (Forms 941, 940) to the information returns filed by employees (W-2s). If the numbers don't match, the IRS adjusts your account.
Other triggers include adjustments from a business income tax audit, corrections to estimated tax credits, penalty assessments for late filing or late payment, and corrections to prior period adjustments.
Review Before You Pay
Compare the adjustment to your original return and supporting records. If the IRS adjusted employment taxes, verify their numbers against your payroll records. If they adjusted business income, compare to your books. If they assessed a penalty, determine whether it's abatable through First-Time Abatement or reasonable cause.
Responding
If the adjustment is correct, pay the balance or set up a payment plan. Business tax balances follow the same collection sequence as individual balances, ending with the CP297 (final levy notice for businesses).
If the adjustment is wrong, contact the IRS at the number on the notice or respond in writing with documentation showing why the adjustment should be reversed. Business tax disputes often require detailed payroll records, bank statements, and accounting records.
If you've received a CP210, call us at (813) 229-7100. Business tax adjustments require business tax expertise.