If you received a CP12 notice, the IRS found one or more mistakes on your tax return. They corrected it, which might affect your refund or the amount you owe. But what does this mean for getting your money back? At Ronald Arthur Stearns PLLC, we help break down these IRS notices and give you clear guidance to deal with any tax issues. Our team is here to help you understand the CP12 notice, making sure you know what changes have been made to your tax return and how you can respond to protect your finances.
Don’t let IRS notices stress you out. Contact Ronald Arthur Stearns PLLC today at 1-512-257-0570 for clear advice and professional help. Our team is ready to assist you with your CP12 notice and ensure your tax matters are managed with care.
Understanding Notice CP12
IRS Notice CP12 is a letter that tells you about changes to a tax return and possible adjustments to refunds or taxes owed. Knowing the purpose of Notice CP12 is the first step in dealing with it. This notice shows the importance of filing taxes correctly and the IRS’s role in fixing mistakes when they find them.
Why You Received Notice CP12
There are a few reasons why the IRS might send you Notice CP12. One common reason is the IRS finding mistakes on your tax return. Errors in your submitted tax return can cause the IRS to change the results, which they communicate through Notice CP12. For example, if there are changes related to claimed tax credits or other adjustments, the IRS will let you know with this notice.
What the Notice Contains
When you get IRS Notice CP12, it’s important to review the notice carefully to understand the changes made. The notice will show if there are changes resulting in a lower refund, a change applied to next year’s taxes, an unchanged balance, or taxes owed. The notice explains the reasons for these changes, providing a detailed breakdown of the corrections and how they impact your tax return. You might find that you are either due a refund or that your original refund amount has been adjusted.
How Do I Verify the Accuracy of Notice CP12?
Checking the accuracy of your Notice CP12 is important to ensure the IRS’s changes to your tax return are correct. Follow these simple steps to review the notice for any mistakes or misunderstandings:
- Read the Notice Thoroughly: Start by reading through the Notice CP12 carefully. Focus on the parts that explain the changes the IRS made to your tax return.
- Compare with Your Original Tax Return: Get a copy of your original tax return and compare it with the changes listed in the notice. Look for any differences in the numbers, especially where the IRS made corrections.
- Double-Check Your Calculations: Recalculate the parts of your tax return that the IRS adjusted. Use a calculator or tax software to make sure your original numbers are right.
- Review Tax Credits and Deductions: Check any changes related to tax credits or deductions. Make sure you claimed the right amounts and that the IRS’s changes match what you should receive.
- Use IRS Guides: Look at IRS guides related to your tax situation to see if the changes follow current tax rules. These guides can help you understand if the IRS’s changes are correct.
- Check Your Tax Documents: Look at your tax documents, like W-2s and 1099s, to make sure all income and deductions match what the IRS has. Differences in these documents can cause misunderstandings in the notice.
- Ask a Tax Professional: If you’re unsure about the notice, talk to a tax professional. They can help you understand what the IRS’s changes mean.
- Contact the IRS if Needed: If you find mistakes or have questions, call the toll-free number on the CP12 notice to speak with the IRS. Getting answers directly from the IRS can help clear up any issues.
By following these steps, you can check that your Notice CP12 is correct and make sure your tax return is accurate. Taking the time to review and understand the notice helps protect your finances and keeps you on track with your tax duties.
Impact of CP12 on Your Refund
The CP12 Notice can change the expected amount of your tax refund, indicating either an increase or a decrease. This notice informs taxpayers about corrections made to their tax returns and possible adjustments to the amounts they may receive or owe. Knowing how to proceed after IRS adjustments is important, whether they result in a different refund amount or create a new refund situation.
Changes to Original Refund Amount
The CP12 notice details any changes that may result in a modified refund amount or adjustments to taxes owed for the current or next year. For example, if the IRS finds calculation mistakes on your original return, this could lead to either an increased or decreased refund amount.
Overpayment and Additional Refund
If the IRS finds that you overpaid on your taxes, they will send you a refund for the extra amount. This additional refund is usually processed and sent to you within 4 to 6 weeks after you agree with the changes. Whether it’s an overpayment found by the IRS or adjustments leading to a new refund situation, knowing what to expect ensures you can plan accordingly.
Will Notice CP12 Delay My Tax Refund?
Yes, getting a CP12 notice from the IRS can delay your tax refund. This notice means the IRS found mistakes on your tax return and made changes, which can change your refund amount. These changes often take extra time to process, so your refund check might arrive later than expected.
Usually, if you agree with the changes in the CP12 notice, you should get your adjusted refund in about four to six weeks. But if there are more issues or if you disagree with the changes, it could take longer.
Make sure to read the notice carefully and respond quickly if you don’t agree with the IRS’s changes. Doing this can help reduce any delays. You can also use the IRS’s online tools to check the status of your refund and stay informed about any updates.
Responding to Notice CP12
When you receive IRS Notice CP12 and if you don’t agree with the IRS’s changes, call the toll-free number on the notice. You usually have 60 days from the date you got the notice to ask for a review of the changes to your refund. Whether you agree or disagree with the IRS’s changes, you should act quickly. Ronald Arthur Stearns PLLC is here to help you understand Notice CP12 and know what options you have based on the IRS’s decision.
Check the Notice Thoroughly
As soon as you get Notice CP12, look it over carefully. Compare what the IRS corrected with what you originally filed to see what has changed. This step helps you spot any mistakes and understand why the IRS made these changes.
At Ronald Arthur Stearns PLLC, we can help by looking at your tax records to find any issues that caused Notice CP12. Our firm reviews your tax documents and gives you advice on how to fix the problems mentioned in the notice. This review helps you take the right actions to solve any issues.
Agreeing or Disagreeing with Changes
If you’re okay with the changes in the notice, you don’t need to do anything else, and you should get your refund check in 4 to 6 weeks, as long as you don’t owe any other debts. If you don’t agree with the changes, make sure to respond to the notice within 60 days to keep your right to challenge it.
Call the IRS using the toll-free number on the notice and provide any necessary documents to dispute the changes. Ronald Arthur Stearns PLLC can help by talking to the IRS for you to address your concerns and find solutions. This service ensures your rights are respected and your issues are handled properly.
Making Payments or Getting a Refund
If Notice CP12 says you owe money, pay it as soon as possible to avoid extra fees. If you’re due a refund, follow the instructions in the notice to get your money back. Acting quickly is important for handling your financial responsibilities.
What Should I Do If I Can’t Pay the Amount Due?
If you receive a Notice CP12 and can’t pay the amount owed, there are options to help you manage your tax debt:
- IRS Payment Plans: You can set up a payment plan with the IRS to pay your tax debt in smaller monthly amounts. Apply online or call the IRS to arrange this. Options include short-term and long-term plans based on what you can afford.
- Installment Agreements: This is a formal setup with the IRS to pay off your debt over time, usually for amounts of $50,000 or less. It helps you avoid serious actions like wage garnishments.
- Offer in Compromise: If you can’t pay your full tax debt, you might qualify to settle for less. This depends on your ability to pay, income, expenses, and assets. Applying can be detailed, and not everyone qualifies, but it can reduce what you owe.
- Temporarily Delaying Collection: If you’re facing severe financial issues, you can ask the IRS to delay collecting your debt until your situation improves. Your account will be marked as “currently not collectible,” though interest and penalties will still add up.
- Getting Help: Talking to a tax professional can be helpful. They can guide you on what to do and help you talk to the IRS.
These options can help you find a way to handle your tax debt that works for your financial situation. Acting quickly can help you avoid extra penalties and interest.
More Help and Information
Knowing how IRS notices and tax return corrections work is important for managing your taxes well. The IRS provides resources to help you understand and deal with your notices such as Online tools and resources.
IRS Contact Information
You can find the IRS’s toll-free number at the top right corner of your CP12 notice for any questions. It’s important to contact the IRS if you have questions about the changes to your tax return mentioned in Notice CP12. This ensures you get the help you need to address any concerns or issues.
Online Resources and Tools
The IRS offers online tools to help you with tax-related questions, like checking your refund status. You can find forms and more information about the CP12 notice and related topics on irs.gov. Using these online resources is important for handling notices and staying on top of your tax obligations.
Getting Help from Ronald Arthur Stearns PLLC
At Ronald Arthur Stearns PLLC, we understand IRS notices like Notice CP12 and can help you deal with them effectively. Our firm provides support to help you understand your notice, respond correctly, and solve any problems you might have. Getting help ensures tax issues are handled correctly and efficiently.
Easy Review and Guidance
We carefully check your tax documents to make sure they follow the rules and suggest the best actions for your situation. Reviewing your tax documents with us helps ensure you follow IRS rules. Our advice can guide you on how to fix any issues found in your tax records. Our guidance provides peace of mind and helps you get the best results for your taxes.
Communicating with the IRS
Our team will talk to the IRS for you, making it easier to solve any tax disputes. This service ensures your concerns are addressed quickly and accurately. By acting as your representative, we can effectively communicate your case, ensuring that all necessary information and documentation are presented to the IRS. This approach not only saves you time and stress but also increases the likelihood of a favorable outcome. Whether it’s clarifying misunderstandings or negotiating payment plans, our team is equipped to handle various situations, providing you with peace of mind and confidence in resolving your tax matters.
Filing a Corrected Return
If there are issues with the IRS’s changes, you might need to file a corrected return. We help clients prepare and submit corrected returns to fix any errors or disputes from IRS changes. This process ensures your tax records are correct and meet IRS requirements.
Contact Us for Help with Your CP12 Notice
If you’ve received a CP12 notice and need help understanding or responding to it, contact Ronald Arthur Stearns PLLC. Our team is ready to help you with any IRS issues you may have. Call us today at 1-512-257-0570 for clear advice and support. Let us help you handle your tax concerns with confidence and ease.