VALID › Notice Library › CP103 notice
In the IRS’s own words · not reviewed by VALID
CP103 notice explained, in the IRS’s own words
We made changes to your tax return because we found a miscalculation. Your balance due changed as a result.
Read the full CP103 page on irs.gov ↗
What this notice is about
We made changes to your tax return because we found a miscalculation. Your balance due changed as a result.
What you need to do
Read your notice carefully. It will explain why you owe.
- Compare the figures on the notice with your tax return.
- Contact us within 60 days of the date of your notice if you disagree with the changes we made.
- If you agree with our changes, correct the copy of your return that you kept for your records. Pay the amount you owe by the date on the notice's payment coupon.
- Contact us to make payment arrangements if you can't pay the full amount you owe. You can apply online for a payment plan (including installment agreements).
How can I find out what caused my tax return to change?
Call us at the toll-free number on your notice for specific information about your tax return.
What should I do if I disagree with the changes you made?
Call us at the telephone number listed on your notice or write to us at the address on the contact stub within 60 days of the date of the notice. We may be able to reverse the change to your account. However, if you’re unable to provide additional information that justifies a reversal, we'll forward your case for audit. This step gives you formal appeal rights, including the right to appeal our decision in court before you have to pay the additional tax. After we forward your case, the audit staff will contact you within 5-6 weeks to fully explain the audit process and your rights.
What happens if I disagree and I don't contact you within 60 days?
You’ll lose your right to appeal our decision before you pay the tax. To dispute the changes, you must pay the tax and then file a claim for refund. You must submit the claim within 3 years of the date you filed the tax return, or within 2 years of the date of your last payment for this tax.
What happens if I can't pay the full amount I owe?
You can request a payment plan with us. Call us at the toll-free number on your notice to talk about payment options or learn more about payment plans.
Am I charged interest on the money I owe?
Not if you pay the full amount you owe by the due date on the payment coupon. However, interest accrues on the unpaid balance after that date.
Will I receive a penalty if I can't pay the full amount?
Yes, you will receive a late payment penalty. You can call us at the toll-free number on your notice if you can’t pay the full amount due because of circumstances beyond your control. If you contact us by the due date of your payment, we may be able to remove the penalty, depending on your situation.
Tips for next year
- Consider filing your taxes electronically. Filing online can help you avoid mistakes.
- Review your return for accuracy before mailing it to us.
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.