What This Notice Means

The IRS received your individual income tax return. It claimed an Elective Payment Election (EPE), and that election is subject to an automatic reduction. As a result, the amount you receive is less than what you claimed.

This isn't an audit and it isn't a finding that you did anything wrong. The reduction is automatic.

Why the Reduction Happened

The reduction is required by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. That law requires certain federal payments to be cut automatically, a process known as sequestration. Elective Payment Elections under the Inflation Reduction Act of 2022 fall within it.

What to Do

No action is required. You don't need to respond.

  • Compare the notice with your return so you understand the difference between what you claimed and what you'll receive.
  • Keep the notice with your return records.
  • Share it with your tax preparer so your records match.

Can You Appeal?

No. Because the reduction is required by law, it can't be appealed.

When to Call

If the notice shows something other than the reduction, such as a balance due or a change you don't understand, call the number on your notice. Have your return and the notice in front of you when you call.

If you have questions about other IRS adjustments to your return, call us at (813) 229-7100.