CP721E is a Spanish-language IRS notice. It tells you the IRS changed your Form 1040 for the year shown as a result of your recent audit. The notice doesn't repeat the examiner's reasoning. Your copy of the audit report has the detailed explanation of each change.
What This Notice Means
The summary on the notice shows your account balance before the change, the increase or decrease in tax, and the result. Depending on the audit outcome, that result can be a refund due to you or an amount you owe.
If You're Due a Refund
If you haven't already received the refund, you should get it within 2 to 3 weeks, as long as you don't owe other taxes or debts the IRS is required to collect.
If You Owe
- Pay the amount due by the date on the notice to limit additional penalties and interest.
- If you can't pay in full, pay what you can now and set up a payment plan for the rest.
If You Disagree
- Call the number on your notice to review your account with a representative. Have your account information and audit report in front of you.
- The IRS assumes you agree with the changes if it doesn't hear from you.
- If you have documents the examiner never saw, ask about audit reconsideration.
Joint Returns
If you filed jointly, the IRS sends a copy of the notice to each spouse. Each copy shows the same information about your joint account. If you owe, pay the amount only once.
Other Things to Know
- You can also write to the address at the top of the notice. Include your Social Security number, the tax year, and the form number you're writing about.
- Keep the notice with your records for that year.
If you received a CP721E after an audit and the result doesn't look right, call us at (813) 229-7100.