CP13R Notice: Recovery Rebate Credit Adjusted

The CP13R Notice is sent by the IRS when adjustments have been made to the Recovery Rebate Credit claimed on a taxpayer’s return. This credit was provided during specific tax years to help individuals offset the economic impact of the COVID-19 pandemic. If the IRS finds that the credit was miscalculated or claimed incorrectly, the CP13R will provide details on the adjustments made and how they affect the taxpayer’s refund or balance due.

Key components of the CP13R Notice:

• Recovery Rebate Credit Adjustments: The CP13R typically outlines changes made to the Recovery Rebate Credit based on IRS records. These adjustments may occur if the IRS finds discrepancies in the taxpayer’s eligibility for the credit, such as reporting errors or income exceeding the eligibility threshold.
• Impact on Refund or Balance: The notice will detail how the changes to the Recovery Rebate Credit affect the taxpayer’s refund or the amount owed. In many cases, this adjustment will reduce the refund or increase the tax liability if the taxpayer was overpaid based on an incorrect credit claim.
• Steps to Take: Taxpayers should review the notice carefully to understand the adjustments. If they agree with the changes, no further action is required. If they disagree or believe the IRS made a mistake, they can dispute the adjustments by providing documentation that supports their original claim.
• Deadline for Response: If the taxpayer intends to dispute the adjustment, they must follow the timeline outlined in the CP13R Notice to submit additional information or file an appeal.

The CP13R ensures that the Recovery Rebate Credit is correctly applied, but adjustments can lead to changes in the refund or balance due.