VALID › Notice Library › CP06/CP06A notice
In the IRS’s own words · not reviewed by VALID
CP06 notice explained, in the IRS’s own words
We’re auditing your tax return and need documentation from you to verify the Premium Tax Credit (PTC) you claimed. If you received CP06, we’re holding all or part of your refund until the audit is completed.
Read the full CP06 page on irs.gov ↗
What this notice is about
We’re auditing your tax return and need documentation from you to verify the Premium Tax Credit (PTC) you claimed. If you received CP06, we’re holding all or part of your refund until the audit is completed.
What you need to do
Provide all necessary documentation within 30 days of the date printed on your notice.
- Download and review Form 14950, Premium Tax Credit Verification PDF, for a list of the documents you need to provide.
- Download and complete a copy of Form 8962, Premium Tax Credit PDF. Use this form to calculate the amount of your PTC and compare it with any Advanced Premium Tax Credit (APTC) payments received.
- Visit the HealthCare site for more information about how to calculate these tax credits.
Send all your documents at the same time and make sure they’re easy to read to avoid processing delays. You have three options for sending them:
- Quickly and securely upload your completed Form 8962 and supporting documentation using the Document Upload Tool.
- If you can’t upload your documentation digitally, fax your completed form and supporting documentation to 855-248-1866 using a fax machine or online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies.
- If you can’t upload your documents digitally or by fax, mail your documents to the address at the top of your notice.
What happens next
You’ll receive a letter from us with the results of your audit.
- If your documentation verifies your claim, the letter will say we’ve closed your audit. For CP06, we’ll also release your refund.
- If we need more information to verify your claimed PTCs, we’ll send an updated audit report.
If you need more time or help from us, call 866-897-0161.
What if you don't respond
If we don’t hear from you within 30 days from the date printed on your notice, we’ll send an updated audit report showing proposed changes to your tax return. This may include more tax for repayment of the APTC and any applicable penalties and interest.
You may want to
- Review this notice with your tax preparer.
- Review the rules for claiming the PTC and make sure you’re eligible for the credit.
- Refer to Publication 974, Premium Tax Credit PDF for more information.
Why did the IRS select my return for audit?
While we accept most returns as filed, we select some for audit to determine if income, expenses, and credits are being reported accurately. We select these returns using various methods including:
- random sampling,
- computerized screening,
- and comparison of information we received, such as Forms W-2 and 1095-A.
An audit doesn’t mean that you made an error or were dishonest.
What if I didn't receive a Form 1095-A?
Contact the Health Insurance Marketplace for an original or a corrected statement.
What if I can't provide the requested documentation?
We'll disallow the PTC and send you a report showing the proposed changes to your tax return.
What if I didn't file a tax return claiming the PTC and someone else is using my name and Social Security number?
Contact us at the number listed on your notice. You can also refer to the IRS identity theft resource page for more information.
Can I file my tax return while I am being audited?
Yes, continue to file all required tax returns before the due date to avoid additional penalties and interest.
Tips for next year
Notify the Health Insurance Marketplace about changes in circumstances, such as income and family size changes. This allows the Marketplace to update the information used to determine your expected amount of the PTC and adjust any advance payment amount.
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free.
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.