Understanding Your CP103 Notice
We made changes to your tax return because we found a miscalculation. As a result of these changes, your balance due also changed.
What you need to do
- Read your notice carefully - it will explain why you owe.
- Compare the figures on the notice with your tax return.
- Pay the amount you owe by the date on the notice's payment coupon.
- Contact us to make payment arrangements if you can't pay the full amount you owe. You can also read about payment options here.
- Contact us within 60 days of the date of your notice if you disagree with the changes we made.
- Correct the copy of your tax return you kept for your records if you agree with our changes.
You may want to
- Download copies of the following materials (if they weren’t included with your notice):
- Publication 1, Your Rights as a Taxpayer
- Publication 15, (Circular E) Employer’s Tax Guide
- Publication 3498-A, The Examination Process
- Publication 594, The IRS Collection Process
- Publication 505, Tax Withholding and Estimated Tax
- Notice 746, Information About Your Notice, Penalty and Interest
- Form 9465, Installment Agreement Request
- Call 1-800-TAX-FORM to request forms and publications by mail.
- Complete and send us a Form 2848, Power of Attorney and Declaration of Representative to authorize someone (such as an accountant) to contact us on your behalf.
Answers to Common Questions
How can I find out what caused my tax return to change?
Call us at the toll-free number on your notice for specific information about your tax return.
What should I do if I disagree with the changes you made?
If you disagree, call us at the toll-free number listed on your notice or write to us at the address on the contact stub within 60 days of the date of the notice. We can reverse the change to your account if your response provides additional information that justifies a reversal. However, if you can't provide additional information that justifies the reversal and we believe the reversal is in error, we'll forward your case for audit. This step gives you formal appeal rights, including the right to appeal our decision in court before you have to pay the additional tax. After we forward your case, the audit staff will contact you within five to six weeks to fully explain the audit process and your rights.
What happens if I disagree and I don't contact you within 60 days?
If you don’t contact us within the 60-day period, you’ll lose your right to appeal our decision before you pay the tax. To dispute the changes, you will have to pay the tax and then file a claim for refund. You must submit the claim within three years of the date you filed the tax return, or within two years of the date of your last payment for this tax.
What happens if I can’t pay the full amount I owe?
You can request a payment plan if you can’t pay the full amount you owe. Call us at the toll-free number on your notice to talk about payment options or learn more about them here.
Am I charged interest on the money I owe?
We don’t charge interest if you pay the full amount you owe by the payment due date on the payment coupon. However, interest accrues on the unpaid balance after that date.
Will I receive a penalty if I can’t pay the full amount?
Yes, you will receive a late payment penalty. You can contact us at the toll-free number on your notice if you can’t pay the full amount due because of circumstances beyond your control. Contact us by the due date of your payment and, depending on your situation, we may be able to remove the penalty.
Tips for next year
- Consider filing your taxes electronically. Filing online can help you avoid mistakes. You can find information about filing options here.
- Review your return for accuracy before mailing it to us.