You are currently viewing Notice CP2501 – You have a Tax Return Discrepancy

Notice CP2501 – You have a Tax Return Discrepancy

Facing a CP2501 – Tax Return Discrepancy notice?

Just like every other notice from the IRS, the CP2501 notice comes because the IRS has something important to say to you. If you have received this notice then questions like “What is CP2501?”, “How do I respond to IRS CP2501?”, and “How do I pay IRS CP2501?” are probably on your mind as they should be.

What is CP2501 notice?

The CP2501 notice is a notice the IRS sends to a taxpayer to inform them that the income or payment information reported to the IRS does not match what the taxpayer reported on their tax return, and the disparity can result in a decrease or increase in the taxpayer’s tax. Nevertheless, we must note that it may not cause any change sometimes.

When you receive this notice, the IRS is simply requesting that you clarify what may have caused the dissimilarity between the information that you entered on your tax return and the information that they have in their files.

Knowing this about the CP2501 notice should be sufficient reason to wipe out your skepticism if your taxes are indeed compliant. If you can properly explain the reason for the discrepancy that was discovered or hire someone to do that for you, then you have nothing to worry about.


How do I respond to IRS CP2501?

Understanding an IRS notice is one thing, knowing how to respond appropriately is another. Follow the steps below when you receive a CP2501 notice from the IRS.

  • Read the CP2501 notice thoroughly to understand the information. It will explain the information the IRS received, how you are expected to respond, and the consequences of failing to respond. This is the most important step because it encapsulates everything.
  • A response form will be attached to the notice. Fill it and indicate whether you agree with the notice or you disagree with it.
  • Send back your response using your channel of choice; either mail or fax. The return address or fax number will be indicated on the notice.
  • If you choose to respond via mail, make use of the return envelope.
  • In a case where you agree with the information on the notice, simply follow the instructions and sign the response form. If you are married and filing jointly, then you and your spouse’s signature will be required.
  • If you disagree with the notice, after completing the response form, attach a signed statement saying why you disagree and provide the necessary documentation to support your statement. You can also contact the business or person that supplied the wrong information to the IRS and ask them for a corrected document or a statement asserting that there was an error and attach this to your response to the IRS.

You are expected to contact the IRS within a period of 30 days after you receive your notice of a tax descrepancy.

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