Understanding Your IRS CP11 Notice - Changes to Your Tax Return Resulting in a Balance Due

A CP11 notice is sent when the IRS finds an error on your tax return that changes your refund or balance, leaving you with taxes owed.

Type of Notice: Balance Due After Adjustments

Receiving an IRS CP11 notice means the IRS has identified an error on your tax return that resulted in changes to your tax liability. This adjustment has created a balance due, which may include additional penalties and interest. While this notice can be concerning, it is a routine communication that provides detailed information about the error and your new balance. It’s important to review the notice carefully and respond appropriately to resolve the issue.

Reasons why you may have received a CP11:

• Calculation Errors: Simple math mistakes, such as addition or subtraction errors, can lead to discrepancies in your tax return, prompting the IRS to adjust your balance.
• Incorrect Tax Credits: If you claimed a tax credit for which you are ineligible or calculated incorrectly, the IRS may adjust your return and send a CP11 notice.
• Missing or Incorrect Information: An adjustment can be triggered by failing to include all required forms or providing inaccurate details, such as Social Security numbers or income.
• Changes to Reported Income: If your income or withholding amounts don’t match what was reported to the IRS by your employer or other third parties, they may correct the discrepancy and issue a CP11.
• Misreported Deductions: Errors in claiming deductions, such as exceeding allowable limits or claiming unqualified expenses, can result in adjustments to your return.

Next steps:

If you receive a CP11 notice, start by reviewing the notice to understand the error and the changes made by the IRS. Compare the information to your tax records to confirm whether you agree with the adjustment. If you agree, pay the balance due as soon as possible to minimize penalties and interest. If you disagree with the changes, contact the IRS using the number on the notice and provide supporting documentation to dispute the adjustment. If payment in full isn’t feasible, consider payment arrangements like an installment agreement or an offer in compromise.

Still need a little help?

Take our word for it: don't procrastinate! If you do, you might end up owing even more due to penalties and interest. If you're feeling unsure about what to do or if things seem too complicated, don't worry! You can always reach out to a local tax pro for some help. Or, if you prefer, you can chat with our team at Protection Plus to see if our on-demand option works for you. We'll walk you through everything you need to do and can even handle talking to the IRS if it's necessary. Check out our on-demand availability here: https://new.taxprotectionplus.com/contact-us