Did you receive a notice CP12 from the IRS? If so, it's most likely due to an error or mistake on your latest tax return. Consequently, you are now either due a tax refund, your original refund amount has changed, or you now might owe income taxes.
Changes to Your Refund, Taxes Owed
Notice CP12 will detail a change in your tax liability as adjusted by the IRS - not by eFile.com or any other tax preparation platform. For tax returns filed or e-filed in 2021, many taxpayers received this notice explaining a reduction of their refund due to the calculation of the Recovery Rebate Credit on their 2020 Return. Taxpayers in 2022 are receiving this notice after filing their 2021 Return due to inaccurate entry of their third stimulus payment. Notice CP12 might list these reasons why your tax return results changed:
- IRS: "The Social Security number of one or more individuals claimed as qualifying dependent(s) was missing or incomplete."
- IRS: "The last name of one more individual claimed as a qualifying dependent does not match our (IRS) records."
- IRS: "One or more individuals claimed as qualifying dependents exceeds the age limit."
- IRS: "The amount (Recovery Rebate Credit) was computed incorrectly (on the respective tax return)."
Respond to Notice CP12
IRS Notice CP12 may require some attention, especially if your refund was changed into taxes owed. Please take these steps regarding Notice CP12:
- Read the content of the notice CP12 carefully so you know the purpose of the IRS tax return correction or adjustment.
- If the notice is about a Recovery Rebate Credit adjustment that resulted in a lower than expected tax refund or a higher than expected tax liability, go back and gather the exact payments you received for Stimulus 1, Stimulus 2, and/or Stimulus 3 from IRS Letters 1444, 1444B, and 1444C. Stimulus 1 and 2 are not part of the 2021 Return, but may be helpful in understanding the amounts you received.
- Then, REVIEW your return and double check if you entered the exact amount for Stimulus 3 on your 2021 Tax Return on the Recovery Rebate Credit
- If you think one or more stimulus payment amounts you received are incorrect, verify your eligibility and payment amounts
- Review your appeal rights and steps to take to prepare a protest if you disagree with Notice CP12.
- If you think the IRS made a mistake by adjusting your tax return based on Notice CP12, either contact the IRS via the contact information listed on Notice CP12 or contact us services@surefintaxsvs.com
