CP31 Notice: Refund Check Returned

Understanding the IRS CP31 Notice: Refund Check Returned

It can be frustrating to expect a tax refund and then receive a letter instead. If you’ve received a CP31 notice from the IRS, don’t panic. It simply means your tax refund check was mailed, but the postal service couldn’t deliver it, so it was returned to the IRS. Let’s break down what that means for you and what steps you should take.

Why Did My Refund Check Get Returned?

The primary reason for a returned refund check is an incorrect or outdated address. Think of it like this: if you move but forget to tell your friends, they might send letters that get returned to them. The IRS relies on the address they have on file for you. If you’ve moved recently, changed your address with your bank, or even made a typo on your tax return, this could cause the issue.

Here are some specific reasons why your refund check may have been returned:

• Incorrect Address on Tax Return: This is a common mistake. If there’s a typo or an old address on the tax return that you sent to the IRS, the check will get sent to the wrong address.
• Moving Without Notifying the IRS: The postal service will only forward mail for a certain amount of time, usually for a year. If you’ve moved and didn’t update your address with the IRS, then the check may get returned after being forwarded.
• Name Change Without Updating the IRS: If you recently changed your name due to marriage or another reason and you did not change it with the Social Security Administration(SSA) it might impact the delivery.
• Invalid or Unrecognized Address: Sometimes, the address provided may have a formatting issue or not be recognized by the USPS for some reason, even if it seems correct. This might happen in rural areas or new developments.
• Forwarding Order Expired: Even with a forwarding order, the post office only forwards mail for a limited time. If the forwarding order expired, the check would then be returned to the IRS.

What Information is on a CP31 Notice?

The CP31 notice from the IRS won’t be too cryptic, it will generally include these key details:

• Your Name and Taxpayer Identification Number (TIN): Usually your Social Security number, this will make sure that the IRS has sent this notice to the right person.
• The Tax Year the Refund Applies to: This will tell you which specific tax return created this refund.
• The Amount of Your Refund: This is the original amount the IRS attempted to send to you.
• Explanation of Why the Check Was Returned: The notice will state that your refund check was returned to them by the postal service.
• Instructions on What to Do Next: The notice will provide directions on what steps you need to take to receive your refund.

What Steps Should You Take After Receiving a CP31 Notice?

Receiving a CP31 notice isn’t the end of the world. Here’s how you can resolve it:

1. Verify Your Address: The first thing you should do is confirm the address the IRS has on file for you. You can do this online at IRS.gov using their “Where’s My Refund?” tool or by calling the IRS directly. Make sure your address is accurate and up to date.

2. Update Your Address with the IRS: If the address is incorrect, you need to update it with the IRS. You can do this in several ways:

   • Submit a Change of Address Online: Through the IRS.gov website, by filing Form 8822, Change of Address.
   • By Mail: Complete Form 8822, Change of Address and mail it to the address in the instructions.

• With Your Tax Return: When filing a new tax return, include the correct address on it, and the IRS will update their records.
  • By Phone: Call the IRS directly to request an address change over the phone.

1. Request a Refund Reissuance: The IRS will not automatically send your refund again after receiving a returned check. You’ll typically have to ask them to reissue your check or arrange for a direct deposit. Here’s how:
   • Online through IRS.gov: Using the “Where’s My Refund?” tool, you may find options to request a new check or change to direct deposit if that is preferred.
   • By Phone: Calling the IRS to request a reissued check.

• By Mail: You may be able to send a written request to the IRS to reissue the check.

1. Choose Direct Deposit: To avoid similar problems in the future, consider requesting that your refund be directly deposited into your bank account. This is faster, more secure, and doesn’t rely on correct mailing addresses.

2. Be Patient: It can take time for the IRS to process your request, so be patient. Make sure you keep records of any requests you submit and check on the status periodically.

How Can I Avoid a Returned Refund Check in the Future?

Preventing future headaches is key. Here are some tips:

• Update your Address Promptly: Whenever you move, make sure to update your address with the IRS as soon as possible. Don’t wait until tax season.
• Use Direct Deposit: Sign up for direct deposit for your refund. This is the fastest, safest way to get your money, without the risk of mailing issues.
• Double Check Your Tax Return: Always double-check the address you provide on your tax return. A simple typo can cause significant delays.
• Use IRS Online Services: The IRS provides a wealth of online services that can assist in updating and checking your information.
• Use a Tax Professional: If you have a complicated tax situation or are moving often, you may benefit from using a tax professional. They can help keep your information up-to-date and ensure that you avoid errors.

What About Lost or Stolen Checks?

While the CP31 notice deals with returned checks, it’s important to know what to do if your check is lost or stolen:

• Report It to the IRS: If your refund check is lost or stolen, contact the IRS right away. They’ll usually initiate a claim process and stop payment on the original check.
• Complete Form 3911: You’ll likely have to complete IRS Form 3911, Taxpayer Statement Regarding Refund, to have your refund investigated and reissued.
• Be Patient: It takes time to process these claims, so keep checking on the status and retain any documentation.

Related IRS Notices

Understanding how the CP31 fits within the realm of other IRS notices can also be helpful. Some related notices you might encounter include:

• CP12 Notice: This is a notice about adjustments made to your tax return.
• CP14 Notice: This notice states a balance you owe the IRS.
• CP01 Notice: Identity verification requests.
• CP501/503/504 Notices: Series of notices for unpaid taxes.

Key Takeaways About the CP31 Notice

• A CP31 notice signals a problem with your tax refund delivery, usually an incorrect or outdated address.
• It’s important to act quickly to confirm your address, update it with the IRS, and request a refund reissuance.
• Direct deposit can help you avoid these issues in the future.
• Keep records of all communications with the IRS.
• Don’t panic; most issues with refunds can be resolved with a little patience.

By understanding what a CP31 notice means and following the right steps, you can ensure that you receive your refund as quickly and efficiently as possible. Don’t ignore these notices – they’re there to help you get the money you’re rightfully owed!