CP12 Notice: Refund Due After Corrections

The CP12 Notice is sent by the IRS to inform taxpayers that corrections made to their tax return resulted in a refund being issued. These corrections could involve adjusting credits, recalculating taxes owed, or correcting errors on the original return. If the IRS finds that the taxpayer overpaid their taxes, the CP12 will notify them of the corrected refund amount.

Key aspects of the CP12 Notice:

• Corrections Explained: The notice will provide details on the changes the IRS made, such as adjusting deductions or credits that were either over- or under-reported. These changes may be related to tax credits like the Earned Income Credit or Additional Child Tax Credit, or they could involve recalculating income.
• Refund Amount: The CP12 will specify the new refund amount after the corrections. In some cases, this may be an increase in the original refund amount, while in others, it may be the first notification that a refund is due.
• What to Do Next: If the taxpayer agrees with the corrections, no further action is necessary, and the refund will be issued. The refund may be sent via direct deposit if the taxpayer provided banking details, or by paper check if no direct deposit information was provided.
• Dispute Process: If the taxpayer disagrees with the corrections, they can dispute the IRS’s adjustments. The notice will include instructions for requesting a review or submitting additional documentation.

The CP12 Notice is generally positive news, as it indicates that the IRS has issued a refund after correcting errors on the original return.