Receiving a notice from the Internal Revenue Service (IRS) after filing Form 1040 can be unsettling. However, not all IRS notices indicate a problem. In many cases, they simply convey updates, request additional information, or confirm processing. Understanding the different types of IRS notices, why you might receive one, and how to respond appropriately is essential to avoid delays, penalties, or unnecessary stress.
Why Does the IRS Send Notices After Filing Form 1040?
IRS notices are official letters that alert taxpayers to an issue, update, or request regarding their tax return. If you’ve filed Form 1040 (U.S. Individual Income Tax Return), the IRS may contact you for any of the following reasons:
- To confirm receipt and acceptance of your return
- To inform you of a math error or miscalculation
- To request supporting documents
- To notify you of a change in refund amount
- To alert you to identity verification requirements
- To propose additional tax due or a refund reduction
- To inform you of an audit or CP2000 notice (underreporting)
Not all notices require a response, but ignoring one that does can lead to further action, including penalties and interest.
Common IRS Notices Related to Form 1040
CP11 – Balance Due After Math Error
This notice means the IRS found a math or clerical error on your Form 1040, which resulted in a tax balance due. Review the changes and respond or pay accordingly.
CP12 – Refund Adjusted
This indicates the IRS made corrections to your return that changed your refund amount. It may result in a larger or smaller refund than you expected.
CP14 – Balance Due
The IRS sends CP14 when your return shows a balance due and no payment was received. It’s the first official notice of tax debt.
CP75 – EITC/Audit Documentation Request
If you claimed the Earned Income Tax Credit (EITC) or other credits, CP75 requests supporting documentation to verify eligibility.
CP01E – Identity Verification
This notice is issued when the IRS needs to confirm your identity before processing your return. This is especially common if you’ve been a victim of identity theft or your return triggered a fraud flag.
CP2000 – Underreported Income
The IRS sends this notice when the income reported on your Form 1040 doesn’t match the income reported by third parties (W-2s, 1099s). It proposes additional taxes, interest, and penalties unless disputed.
LTR 4464C – Return Under Review
This letter indicates that the IRS is reviewing your tax return for accuracy and completeness. No action is usually required unless the IRS contacts you again.
How to Read an IRS Notice
IRS notices can be technical, but they all follow a standard format. Pay close attention to these sections:
- Notice Number: Found in the upper right corner (e.g., CP12, CP2000)
- Tax Year: Indicates which filing year the notice refers to
- Explanation: Provides details about the issue and what changes were made
- Action Required: Outlines what you need to do, if anything
- Deadline: Specifies when a response or payment is due
Steps to Take After Receiving a Notice
Here is a practical checklist for how to respond to any IRS notice related to your Form 1040:
Step 1: Don’t Panic
Many notices are informational. A notice does not automatically mean you owe more taxes or that you’re being audited.
Step 2: Review Carefully
Read the notice line by line. Compare the information with your tax return and documents (W-2, 1099s, etc.). Determine if you agree or disagree with the IRS assessment.
Step 3: Respond Promptly
If the notice requires a response or payment, act before the stated deadline. Delaying could result in additional penalties and interest. For most CP2000 and audit notices, you usually have 30 days to respond.
Step 4: Provide Documentation
If the IRS requests proof of income, expenses, or credits (such as for EITC or education credits), provide clear, legible copies of the relevant documents.
Step 5: Dispute If Necessary
If you disagree with the notice, write a letter explaining why, and include supporting evidence. Mail your response to the address listed on the notice. Certified mail with return receipt is recommended for tracking.
Step 6: Contact the IRS or a Tax Professional
If you’re unsure how to respond, consider contacting the IRS directly or consulting a tax professional. The IRS phone number is usually listed on the top right of the notice. Be prepared with your notice, tax return, and any supporting documents when calling.
How to Avoid Future IRS Notices
- Double-check your return: Avoid math errors and ensure all fields are correctly completed.
- Report all income: Don’t forget interest, dividends, and gig economy income.
- Use reliable tax software or a professional: Automated systems help catch errors early.
- Update your address: File Form 8822 if you move to ensure notices reach you.
- File and pay on time: Late filing or payment increases the likelihood of penalties and notices.
Responding Electronically vs. By Mail
Some notices allow for an electronic response through the IRS website, especially if they only require confirmation or identity verification. However, many issues (like CP2000 or audits) must be responded to by mail.
If you’re unsure, refer to the instructions provided in your specific notice or visit www.irs.gov for more information.
What If You Ignore the Notice?
Failing to respond to an IRS notice can have serious consequences:
- Additional interest and penalties
- Loss of appeal rights
- IRS collections, liens, or levies
- Denial of future refunds or credits
The IRS considers a notice delivered even if you didn’t see it, as long as it was mailed to your last known address. Always update your contact information with the IRS using Form 8822.
Conclusion
Receiving an IRS notice after filing Form 1040 is not uncommon and doesn’t always mean trouble. Many notices are routine and can be resolved quickly with a timely and appropriate response. The key is to read the notice carefully, understand what’s being asked, and act promptly. Whether it’s a math correction, a request for documentation, or a proposed adjustment to your return, your response can ensure smoother processing and protect your tax rights.
For official IRS guidance or to verify your notice, visit the IRS Notice Lookup Tool.
