What this notice is about
We made changes to your return involving the Making Work Pay and Government Retiree Credit. You owe money on your taxes as a result of these changes.
What you need to do
- Read your notice carefully ― it will explain how the changes we made affected the Making Work Pay and Government Retiree Credit.
- Pay the amount owed by the date on the notice's payment coupon.
- Make payment arrangements if you can't pay the full amount you owe.
- Contact us within 60 days of the date of your notice if you disagree with the change we made.
- Correct the copy of your tax return that you kept for your records.
Frequently asked questions
How can I find out what caused my tax return to change?
Please contact us at the number listed on your notice for specific information concerning your tax return.
What should I do if I disagree with the changes you made?
If you disagree, contact us at the toll free number listed on the top right corner of your notice.
If you contact us in writing within 60 days of the date of this notice, we'll reverse the change we made to your account. However, if you're unable to provide us 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. If you don't contact us within the 60-day period, you'll lose your right to appeal our decision before payment of tax.
If you don't contact us within 60 days, the change won't be reversed and you must pay the additional tax. You may 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 arrange to make a payment plan with us if you can’t pay the full amount you owe.
Am I charged interest on the money I owe?
Not if you pay the full amount you owe by the 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 number given on your notice if you're unable to pay the full amount shown in your specific notice 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.
What is the Making Work Pay Credit?
Making Work Pay Credit is a refundable tax credit that can go up to $400 for individuals and to $800 for married taxpayers.
How can taxpayers get this credit?
Taxpayers received the credit in advance through the automatic recalculation of their withholding amounts in the spring of 2009. This recalculation resulted in more take-home pay for them in their paychecks. Taxpayers then must demonstrate their eligibility for the credit by completing a Schedule M, Making Work Pay and Government Retiree Credits on their 2009 income tax return.
What happens if I don’t receive a paycheck from an employer?
You can claim the credit on your 2009 income tax return with a Schedule M, Making Work Pay and Government Retiree Credits.
Tips for next year
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.
Perform a quick check on the amount you have withheld to pay your taxes to make sure you won't owe money next year. You can use this Tax Withholding Estimator.
Tax publications you may find useful
- Publication 1, Your Rights as a Taxpayer
- 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
- Find a copy of any necessary tax forms and instructions
- You can authorize someone to contact the IRS on your behalf.
- See if you qualify for help from a Low Income Taxpayer Clinic.
If you can’t find what you need online, you can call the IRS at the 800, 866, or 888 number listed on the notice.