VALID › Notice Library › CP16 notice
In the IRS’s own words · not reviewed by VALID
CP16 notice explained, in the IRS’s own words
We corrected one or more mistakes on your tax return. Because you or your spouse owe other tax debts, we applied all or part of your refund to pay off those debts.
Read the full CP16 page on irs.gov ↗
What this notice is about
We corrected one or more mistakes on your tax return. Because you or your spouse owe other tax debts, we applied all or part of your refund to pay off those debts.
What you need to do
Read your notice carefully to see what was changed on your return and how those changes affected your refund.
If you agree with the changes we made, no response is required.
- If you’re due a refund, you should receive a refund check in 4-6 weeks. Check on the status of your refund.
- You may want to correct your tax return copy that you kept for your records, but don't send it to us.
If you disagree with our changes, contact us at the number shown on the notice by the date indicated.
- If some or all of your refund was applied to your spouse’s tax debts, you may be eligible for innocent or injured spouse relief.
You may want to
If you still owe an outstanding balance for another tax year, we'll continue to apply refunds to the outstanding balance until its paid, even if you have a payment plan.
- Sign into your Online Account to view any outstanding balances you may still owe.
- To avoid paying additional interest and applicable penalties, pay your remaining balance in full.
- If you can't pay your tax debt in full, you can make arrangements to pay over time.
Visit Online Account to:
- Access tax records
- View your balance
- Make and view payments
- View or create payment plans
- Manage your profile preferences
- View tax professional authorizations
- Learn more about accessibility options
- View tax transcripts
What if I disagree with the debt you applied my refund to?
Contact us at the number provided in the “Where to find more information” section of your notice to discuss your account.
How can I find out what caused my tax return to change?
Review the “What we changed on your return” section of your notice. For more information about the errors on your return, call us at the number shown in “Where to find more information”.
When must I respond if I disagree with the changes you made?
If you disagree, contact us by the date shown on your notice. Call us at the toll-free number shown in the “Where to find more information” section of your notice. The fastest way to resolve many return errors is by telephone. Some cases require additional information that you may provide verbally. If we need a missing or corrected form or document, you can fax your documents using either a fax machine or online fax service while on the telephone. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies.
We’ll reverse most changes we made if we increased the amount you owe or if your return requested a refund. You don’t need to provide an explanation or additional documents when you request the reversal, but doing so may help us resolve your case more quickly. If we don’t receive information that supports your original return, we may forward your case for audit, in which case the audit staff will contact you within 6 weeks to explain the process and your rights.
If you don’t contact us by the date shown on your notice, you will lose formal rights to have the change(s) reversed, as well as your right to appeal our decision to the U.S. Tax Court. However, if you contact us and send supporting documentation after that date, we will still consider that information and we may reverse the change(s) to your return if we agree with you.
My refund was applied to my spouse's debt. How can I find out if I am an injured spouse?
Learn more about innocent and injured spouse relief.
What should I do if I need to make another correction to my tax return?
You'll need to file Form 1040-X, Amended U.S. Individual Income Tax Return to make a correction.
Tips for next year
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.
To help avoid the same issue next year, correct the copy of this year's tax return that you kept for your records. If you use a tax preparer, have them correct their copy also.
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.