CP21A Notice: Changes to Your Return; Balance Due

The CP21A Notice is sent by the IRS when adjustments made to a taxpayer’s return result in a balance due. This notice indicates that after reviewing the return, the IRS identified discrepancies or corrections that required a recalculation of the taxpayer’s liability, which could be due to changes in deductions, credits, or reported income.

What to expect from the CP21A Notice:

• Explanation of Changes: The notice will detail the adjustments made, such as corrections to incorrectly reported income, adjustments to credits (like the Earned Income Credit or Child Tax Credit), or changes to deductions.
• Balance Due: The CP21A will specify the amount of additional taxes owed as a result of these adjustments. The notice will provide a clear breakdown of the original balance and the new amount due.
• Payment Instructions: Taxpayers are expected to pay the balance by the deadline provided in the notice. The IRS offers several payment options, including online payments, installment agreements, and more. Taxpayers who are unable to pay the balance in full may qualify for a payment plan.
• Right to Appeal: If the taxpayer disagrees with the adjustments, they have the right to appeal. The CP21A will include instructions on how to file an appeal or submit documentation to dispute the corrections.

The CP21A Notice requires prompt attention to avoid additional penalties or interest charges on the new balance.