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Understanding your CP260 Notice

We removed a payment that was incorrectly applied to your tax return for the tax period shown on your notice. This notice shows the correct amount you owe us. We apologize for any inconvenience this has caused.

What you need to do

  • Read the notice carefully. It will show the date and amount of the payment we removed.
  • If you agree with the notice, pay the amount you owe by the date on the notice’s payment coupon. If necessary, correct your copy of the tax return in your records.
  • If you can't pay the full amount, pay as much as you can now and make payment arrangements for the remainder. For more information, call us at 1-800-829-0115 or visit our website for your payment options.
  • If you disagree with the notice, contact us within 30 days from the date of your notice by calling the toll free number listed on your notice or by mailing the completed contact stub with any correspondence or documentation.
  • Adjust this year’s tax payments to avoid any possible underpayment.

Answers to Common Questions

Why did I receive this notice?

You received this notice because a payment was misapplied to your account.

What should I do if I believe you incorrectly removed the payment?

Call us at the toll free number listed on your notice or mail us a copy of your notice and proof of payment to the address on the notice.

What do I say when I call the IRS?

Tell the customer service representative you received a CP 260 notice and you want to review your account. Be sure to have a copy of your notice and your tax return before you call.

What should I do if I believe you misapplied a payment or haven't credited a payment I made?

Call us at the toll free number listed on your notice. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call.

Tips for next tax period

  • Make sure you claim the proper amount of credit on your next tax return. You may need to adjust your estimated tax payments or your federal tax deposits.
  • 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.

Tax publications you may find useful

Page Last Reviewed or Updated: 12-Feb-2016

How to get help

  • Call the 1-800, 1-866 or 1-888 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.