IRS CP21B Notice: What It Means and What You Should Do

Receiving an IRS CP21B Notice means the IRS processed your tax return but made a change that resulted in you owing additional tax. This notice helps explain those changes and what actions you should take next.

What is an IRS CP21B Notice?

The CP21B is issued when:

  • The IRS has reviewed your tax return and found an error.
  • They corrected the error and adjusted your tax liability.
  • The notice explains the correction and the additional amount you owe.
Why Did I Get a CP21B Notice?

Common reasons include:

  • Incorrect calculation of income or credits.
  • Math errors on your return.
  • Misreported withholding or payments.
What Should I Do After Receiving CP21B?

Step 1: Carefully Review the Notice
Check the IRS's corrected amounts against your original tax return.

Step 2: Agree or Disagree?

  • If you agree, pay the amount due by the deadline to avoid penalties.
  • If you disagree, contact the IRS promptly and provide supporting documentation.

Step 3: Respond Quickly
You generally have 60 days from the notice date to dispute the changes or pay.

What Happens If I Ignore a CP21B Notice?
  • Penalties and interest will accrue on unpaid taxes.
  • The IRS may take enforced collection actions.
  • You could lose your right to challenge the adjustment.
Tips to Avoid CP21B Notices
  • Double-check income and withholding reported on your return.
  • Use trusted tax preparation methods or professionals.
  • Keep detailed records of all tax documents.

KARME Tax Services Is Here to Help

Dealing with an IRS CP21B Notice can be confusing and stressful. At KARME Tax Services, we help you:

  • Understand the IRS's changes
  • Challenge incorrect adjustments
  • Set up payment plans if needed
  • Avoid future IRS notices

Call KARME today at 972-519-0041 or schedule a consultation online. The sooner you act, the more options you have.

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