Glossary

CP18 Notice

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The CP18 notice is sent by the IRS when it believes that certain deductions or credits claimed on a taxpayer’s return may be incorrect. This notice informs the taxpayer that the IRS will review these items and possibly adjust the return based on their findings.

Key points about CP18:

It alerts taxpayers that specific deductions, credits, or other items on their return appear to be inaccurate or improperly claimed.
The IRS will investigate the discrepancy and may adjust the return, leading to a revised balance owed or an adjusted refund.
Taxpayers are given the opportunity to respond to the notice if they disagree with the IRS’s findings.

Taxpayers should review the CP18 notice carefully and provide any documentation supporting their claims to avoid an unfavorable adjustment. Ignoring the notice could result in the IRS adjusting the return without input from the taxpayer.

Recommendation

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