What This Notice Means

The IRS changed your return. It found differences between your employment tax return and the amounts reported on your Forms W-2, W-2G, and 1099-R. The IRS adjusted your account based on those differences.

What to Do

  • If you have a balance, pay it by the date shown on your notice.
  • If you can't pay in full, review other ways to pay, 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.

The 30-day window matters. That's your time to correct the record before the change becomes harder to undo.

Figure Out What Didn't Match

Call the number listed on your notice to find out which amounts didn't match. Then compare:

  • The withholding you reported on your employment tax return.
  • The withholding shown on the W-2, W-2G, and 1099-R forms you issued.
  • Any corrected forms you filed for either one.

If the forms you issued were wrong, corrected forms may be needed. If your return was wrong, the IRS change may be right. Either way, know which side the error is on before you call back.

Penalties

You could be charged a penalty if you can't pay the full amount. If you were charged one, your notice explains how it was calculated. Notice 746 has more on penalties and interest. Publication 3498-A explains the examination process.

Getting Help

A Business Tax Account lets you view your business information and IRS messages. You can authorize a representative to deal with the IRS for you with Form 2848. Keep copies of everything you send and use certified mail for paper responses.

If you received a CP240 and want the mismatch sorted out, call us at (813) 229-7100.