Understanding Your CP127 Notice

What this notice is about

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

Download a copy of Instructions PDF for Form 1042 PDF.

Frequently asked 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.

Helpful information

• Publication 15, Circular E, Employer's Tax Guide PDF
• Publication 515, Withholding of Tax on Non Resident Aliens and Foreign Entities PDF
• Notice 746, Information About Your Notice, Penalty and Interest PDF

Tips for next time you file

• Consider filing your taxes electronically. Filing online can help you avoid mistakes. Learn more about filing options.
• Review your return for accuracy before mailing it to us.