IRS Logo
Print - Click this link to Print this page

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 must 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.

Page Last Reviewed or Updated: 11-Jan-2017

How to get help