What This Notice Means
Your return listed at least one Social Security number that IRS records show is not valid for employment. To claim some tax credits, you, your spouse if applicable, and your qualifying children must have been issued an SSN valid for employment before the return due date. If an SSN doesn't meet that test, some credits on your return may not be allowed.
"Not valid for employment" usually means Social Security Administration records show the person isn't authorized to work in the U.S., or their status hasn't been updated.
What to Do
Compare the SSNs on the notice to the actual Social Security cards for you, your spouse, and your qualifying children.
If the numbers don't match, you probably made a typo. You don't need to contact the IRS right now. Use the correct SSN on future returns.
If the numbers do match, contact the Social Security Administration to check the records. If the SSN really isn't valid for employment and you claimed credits that require a valid SSN, correct your return with Form 1040-X, Amended U.S. Individual Income Tax Return. Mail it to the service center shown in the form instructions.
If you think SSA has outdated citizenship or immigration information, contact SSA to update it.
Do You Need to Call the IRS?
No. Contact the IRS only if it sends you another notice asking for more information. If that happens, answer by the date on that notice.
Will This Affect Your Refund?
It could. Some credits require a valid SSN. If the SSN doesn't qualify, those credits may be reduced or removed. If that creates a balance due, deal with it quickly. Interest keeps running on unpaid tax.
Good Practice
- Go over the notice with your preparer if you used one.
- Pull out your original return and compare.
- Keep this notice with your records.
If a CP321M leads to a reduced refund or a balance you can't pay, call us at (813) 229-7100.