Glossary

CP251 Notice

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The CP251 notice is sent by the IRS to notify taxpayers of discrepancies between the estimated tax payments they reported on their return and the payments recorded in the IRS’s system. This notice serves as a request for the taxpayer to reconcile the differences and resolve any miscalculations.

Key points in CP251:

It lists the amounts reported by the taxpayer and those recorded by the IRS, highlighting any inconsistencies.
The taxpayer is required to review their payment records and provide documentation if they believe the IRS’s records are incorrect.
Failure to resolve the discrepancies could result in penalties and interest on underpaid taxes.

Taxpayers should respond to CP251 promptly by checking their payment history and ensuring that all payments are accurately recorded by the IRS.

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