What This Notice Means
The IRS changed your return because the amounts on your information returns don't match the amounts on your employment tax returns. When those don't agree, the IRS adjusts your account, and that often creates a balance due.
What to Do
- If you have a balance due, pay it by the date shown on your notice.
- If you can't pay in full, look at the other payment options, including an installment agreement on Form 9465.
- If you disagree with the changes, contact the IRS within 30 days from the date of your notice.
That 30-day window is your chance to fix this before the change sticks. Use it.
Find Out What Didn't Match
Call the number listed on your notice to learn which amounts didn't match. Then pull your own records for the period: payroll registers, the employment tax returns you filed, and the information returns you sent out.
Mismatches often come from a corrected form filed for one but not the other, a wrong tax period, or a wrong EIN on one of the filings. Find the source. If your employment tax return was right and the information return was wrong, you need to show that. If the employment tax return was wrong, correct it.
Penalties
You could be charged a penalty if you can't pay the full amount. If a penalty was charged, your notice explains how it was calculated. Notice 746 has more information about penalties and interest.
Getting Help
You can view your business information and IRS messages through a Business Tax Account. You can authorize a representative to deal with the IRS for you with Form 2848. If you can't resolve the issue on your own, the Taxpayer Advocate Service may help.
Keep copies of everything you send and note the date and name of every IRS employee you talk to.
If you received a CP230 and the numbers don't add up, call us at (813) 229-7100.