What This Notice Means
On your return, you didn't check the box saying someone else can claim you as a dependent. IRS records show another person did claim you as their dependent. The CP321D points out that conflict.
This is not an audit. The IRS says plainly that it is not auditing you at this time.
What to Do
Review the rules for who can be claimed as a dependent. Publication 501 covers them, and the IRS Interactive Tax Assistant has a tool for it. Then:
- If no one else can claim you, you don't need to send the IRS anything right now.
- If someone else can claim you, fix your return by filing Form 1040-X, Amended U.S. Individual Income Tax Return. Follow the form instructions. You can mail it to the service center listed in the instructions or file it electronically.
If a preparer did your return, go over the notice with them. Keep the notice in your permanent records.
Who Claimed You?
The IRS won't tell you. Disclosure laws bar it from revealing who claimed you as a dependent.
Do You Need to Send Proof?
No. You don't need to take any action or send documents at this time. If the IRS needs more from you later, it will send another notice. Respond to that one by its due date.
Why Getting This Right Matters
Whether you can be claimed by someone else affects what you're allowed to take on your own return. If you were claimable and didn't say so, fixing it yourself now with an amended return is better than waiting for the IRS to come back to it. If you were not claimable, the other person's return is their problem, not yours.
Next Year
Before you file next year, check whether anyone can claim you. Then mark your return correctly.
If you received a CP321D and aren't sure whether you need to amend, call us at (813) 229-7100.