CP16 Notice

The CP16 notice is sent by the IRS when they have found a miscalculation on a taxpayer’s return. This notice informs the taxpayer that the IRS has corrected the return, which may result in an adjusted balance owed or an adjusted refund.

Key points about CP16:

• It explains the discrepancies found on the tax return, such as calculation errors in reported income, deductions, or credits.
• The notice details how much more (or less) tax is owed or how much the refund has been adjusted.
• Taxpayers are encouraged to review the notice and contact the IRS if they disagree with the corrections.

Taxpayers receiving CP16 should check their original return and the IRS’s explanation carefully. If the taxpayer agrees with the changes, no further action is required unless a balance is due.