CP21C Notice: Changes to Your Tax Return – Balance Due

The CP21C Notice is issued by the IRS to inform taxpayers that the IRS has made adjustments to their tax return, which have resulted in a balance due. These changes may occur after the IRS finds discrepancies or errors during a review of the return.

Key elements of the CP21C Notice:

• Explanation of Changes: The notice provides a detailed breakdown of the changes made to the taxpayer’s return. These adjustments could involve corrections to income, deductions, or credits that were incorrectly reported.
• Balance Due: The notice specifies the amount the taxpayer now owes as a result of the adjustments. This amount may include additional taxes, penalties, and interest.
• Payment Options: Taxpayers are provided with several payment options to settle the balance, including paying online, setting up an installment agreement, or mailing a check. The notice outlines deadlines for payment to avoid further penalties or interest accrual.
• Dispute Process: If the taxpayer disagrees with the changes, they can dispute the notice by providing documentation to support their original return. Instructions for submitting a dispute are included in the notice.

The CP21C Notice is an important communication that informs taxpayers of adjustments to their return and the resulting balance due, requiring prompt attention to avoid further penalties.