Understanding Your CP240 Notice

There’s a discrepancy between information you reported on your employment tax return and figures submitted to us from your W-2, W-2G and 1099R forms. As a result of this discrepancy, you owe an additional amount.

What you need to do

  • Read your notice carefully. It will explain why you owe money on your taxes.
  • Pay the amount you owe by the date on the notice’s payment coupon.
  • If you can’t pay the full amount, call the number listed on the notice to make a payment arrangement.
  • If you disagree with the changes we made, contact us within 30 days from the date of your notice.

Answers to common questions

How can I find out what caused my tax return to change?
Call us at the number listed in your notice or write to the address listed in the notice for specific information concerning your tax return.

What should I do if I disagree with the change you made?
Call us at the number listed in the notice or write to us at the address listed in the notice. Be prepared to provide supporting correspondence or documents to show why you disagree.

What happens if I can’t pay the full amount?
You can arrange a payment plan with us if you can’t pay the full amount.

Will I receive a penalty if I can’t pay the full amount?
Yes, we will charge you a late payment penalty. Your notice explains how we calculate that penalty.

Printable samples of this notice (PDF)

Need Help?

  • 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.