Notice CP10

Notices Return Errors Notice CP10

The cp10 is a notice the IRS uses to suggest an adjustment to your tax return. They do this based on a piece of contrary information they got from third parties like employers, lenders, or banks. This information led them to believe that you owe additional taxes.

The IRS uses the Notice CP10 to rebuff an estimated tax payment into the next year.

While they use the notice CP10A to adjust a taxpayer’s Earned Income Credit.

The notice cp10 lists some items as missing on your return.  It is necessary for you to review this notice and confirm that those items are actually missing as stated.

 

Even though the cp10 proposes that your return be adjusted due to the documents supplied by third parties indicating some missing items, the cp10 can be wrong and you need to verify that.

How to respond to a cp10

Responding to a cp10 is a bit tricky as the response can make the situation better or extremely worse. Your response can even lead to an audit. This is because when you respond, you are providing information to the IRS that will be thoroughly reviewed by a Compliance Officer whose job is to confirm that the information you supply settles the unresolved issues listed in the notice CP 10.

 

If your response creates more confusion than clarification, the Compliance Officer can easily make an audit referral on your tax account.

 

To respond to the cp 10 notice, you can either file an amended tax return to address the outstanding items mentioned by the IRS on the notice or you can write the IRS via the address given on the notice.

 

It is important to know that when you file an amended return, you restart the statute of limitations on things like audits, collections, bankruptcy, etc.

Writing to the IRS also has its con. And it is that letters can be misconstrued or even lost.

 

What do I do when I receive a cp 10 notice?

After going through the notice, you need to decide if you feel unfazed enough to handle the situation on your own. If you can, then do so immediately. However, if the issue is complicated, we recommend that you hire a professional because your ignorance can be taken advantage of.

You can contact us.

Other things you should do include:

– Go through the notice to determine if it was sent in error.

– Understand that there is a time limit. The IRS always gives deadline for each of their notices. The time limit will be indicated on the notice. Work towards resolving the issue before the deadline.

– On no account should you ignore the notice and expect it to just go away. Tax situations get worse when left unattended to. If it is beyond your control. We can handle it for you.