IRS CP25 Notice: What It Means and How to Respond

Receiving an IRS CP25 Notice means the IRS has identified a math or clerical error on your return that led to a refund or balance due being adjusted. This notice outlines the IRS's corrections and explains what actions you should take.

What Is an IRS CP25 Notice?

The CP25 Notice is sent when:

  • The IRS finds a math error or mismatch on your return.
  • They correct the error and adjust your refund or tax balance.
  • The notice details the changes and explains your updated amount owed or refund.
Why Did I Get a CP25 Notice?

Common reasons include:

  • Incorrectly reported income or withholding amounts.
  • Math errors in adding or subtracting.
  • Errors related to credits or deductions.
What Should I Do After Receiving CP25?

Step 1: Review the Notice
Compare the IRS's correction with your original tax return.

Step 2: Agree or Disagree?

  • If you agree, no further action is required if you owe nothing or pay the balance due promptly.
  • If you disagree, contact the IRS and provide documentation supporting your position.

Step 3: Respond Promptly
You typically have 60 days from the notice date to respond or pay.

What Happens If I Ignore a CP25 Notice?
  • Interest and penalties may accumulate on unpaid balances.
  • The IRS may take collection actions.
  • You could lose the opportunity to dispute the correction.
Tips to Avoid CP25 Notices
  • Double-check income, withholding, and credit amounts on your return.
  • Use reliable tax software or a tax professional.
  • Keep detailed records for all tax-related information.

KARME Tax Services Is Ready to Help

Don't let a CP25 Notice catch you off guard. At KARME Tax Services, we:

  • Analyze IRS corrections carefully
  • Help dispute errors when necessary
  • Negotiate payment plans or settlements
  • Help you avoid future IRS notices

Call KARME today at 972-519-0041 or schedule your consultation online. Quick action can save you money and headaches.

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