Understanding Your CP127 Notice
We made changes to your Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, because we found a miscalculation. Our changes don’t affect the amount of tax you owed.
What you need to do
- Read the notice carefully.
- Compare the figures on the notice with your tax return.
- Contact us within 10 days of the date of the notice if you disagree with the changes we made. Please have your account information available when you call.
- Correct the copy of your tax return that you kept for your records if you agree with our changes. Keep this notice for your records.
You may want to
Answers to Common Questions
What should I do if I have been charged a penalty and I don’t agree?
If we charged a penalty and you would like us to consider removing it, you must send us a written request. When you write, identify the penalty you would like us to reconsider and explain the reasons why we should remove it.
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.
Tax publications you may find useful
- Publication 1, Your Rights as a Taxpayer
- Publication 15, (Circular E) Employer’s Tax Guide
- Publication 515, Withholding of Tax on Non Resident Aliens and Foreign Entities
- Notice 746, Information About Your Notice, Penalty and Interest