CP21A: We Changed Your Return and Now You Owe

Why you might get this

• You asked for a change to your return, or the IRS found something that needed correcting.
• After the change, your tax went up and left a balance you still owe.
• The IRS adjusted your account and is telling you the new amount due.

The deadline

The notice has a payment date printed on it. Paying by that date helps you avoid extra interest and a late-payment penalty. If you can't pay in full, contacting the IRS by that date may let them remove the penalty in some situations.

This notice doesn't carry a fixed response deadline, but it still deserves attention — see what to do below.

What to do

1. Read the notice to see what was changed and the exact amount you owe.
2. If you agree, pay the amount by the date printed on your notice. Paying online helps it post on time.
3. If you can't pay it all, look into a payment plan, a temporary delay in collection, or an offer in compromise (a deal to settle for less).
4. If you disagree, call the phone number on your notice and have your notice and tax return ready.
5. Update your own copy of the tax return so your records match.
6. If you need to fix something else, file Form 1040-X (Amended U.S. Individual Income Tax Return).

What happens if you ignore it

Interest keeps adding up on the unpaid balance, and you'll be charged a late-payment penalty. The debt grows until it's paid or resolved.

If you've called the IRS several times and still can't get answers, you can reach the Taxpayer Advocate Service at 877-777-4778 (TTY/TDD 800-829-4059). You may also qualify for free help from a Low Income Taxpayer Clinic. If you think someone filed using your identity, call the number on your notice and check Identity Theft Central.

What a CP21A Notice Means

You got a CP21A notice because the IRS made a change to one of your past tax returns, and that change means you now owe money. The notice explains the adjustment and shows the balance due.

What to do first: Read the notice closely so you understand exactly what changed and how much you owe. If the numbers look right, pay by the date printed on your notice. Paying online is the fastest way to make sure your payment posts on time.

Can't pay it all? You have options. You can set up a payment plan, ask for a short delay in collection, or look into an offer in compromise, which is a deal to settle for less than the full amount.

Think it's wrong? Call the phone number on your notice. Have your notice and your tax return in front of you when you call.

Keep in mind that interest and a late-payment penalty can build up on any unpaid balance, so acting early saves you money.

If you'd like a little backup, Solace can keep an eye on your IRS account and let you know when something changes.