NOTICE CP16

IRS Notice CP16 is a notice that the IRS sends to taxpayers to inform them that their tax return has been changed due to an error. The changes resulted in a refund, but the IRS has offset this refund to pay down an existing tax debt from a previous tax year.

• You made a mistake on your tax return, such as claiming a deduction that you were not eligible for or failing to report all of your income.
• The IRS discovered a discrepancy in your tax records, such as a difference between the income that your employer reported to the IRS and the income that you reported on your return.
• The IRS made a mistake on your tax return.

1. Review the notice carefully to understand the changes that the IRS made to your tax return and the reasons why the changes were made.
2. If you agree with the changes, you do not need to take any further action.
3. If you disagree with the changes, you can contact the IRS to dispute them. You have 60 days from the date of the notice to dispute the changes.
4. If you do not dispute the changes within 60 days, the IRS will finalize the changes and you may have to pay additional tax and interest.

How to dispute the changes:

You can dispute the changes on a CP16 notice by calling the IRS at the number on the notice or by writing to the IRS at the address on the notice. When you contact the IRS, you should have a copy of your tax return and the CP16 notice available.

If you dispute the changes, the IRS will review your case and may send you a letter explaining their decision. If you disagree with the IRS’s decision, you can file an appeal.