Receiving an adjusted refund of $0.0 can definitely be confusing and raise questions. Don’t worry, this doesn’t mean you are in trouble. When the IRS makes an adjustment like this, it can mean the IRS made a math error, there is an outstanding debt, or means the IRS used your refund to pay off any outstanding debt.
Checking your mail box and seeing a letter addressed from the IRS can drive you into a state of panic. You may be asking yourself so many questions as you slowly tear open the envelope. If you see that the IRS sent a notice stating they made a change to your refund check amount, there’s no need to be alarmed. Every year, the IRS issues thousands of IRS adjusted refund letters to taxpayers across the country. An IRS adjusted refund letter doesn’t mean you did anything erroneous. Instead, it’s a simple notice letting you know a change has been made to your refund
Whenever the IRS makes an amendment to your return, they will send you a notice with the letters “CP” followed by a unique number on the top. These different numbers point to their reason for making an amendment to your return.
Adjusted refund amount means the IRS either owes you more money on your return, or you owe more money in taxes. For example, the IRS may use your refund to pay an existing tax debt and issue you a CP49 notice. Or, a simple math error can turn out in your favor with a CP12 notice that corrects one or more mistakes on your tax return. For example, if you made an over payment on your taxes, the IRS would send you a refund check for the amount you overpaid in about 4-6 weeks. These types of notices do not mean you are in trouble and you usually don’t have to respond to these common IRS notices, unless you disagree.
If you get an IRS adjusted refund letter in the mail, you may be perplexed about what you did wrong on your tax return. When you receive a letter from the IRS by mail, they will always give contact information in the top right corner by the CP number so you can ask questions, or get more information on your case. Each notice will generally provide details on:
As previously mentioned, the IRS sends notices for a several reasons. You can always perform a notice and letters search on the IRS website to get more information on the notice or letter you received, along with answers to many tax refund FAQs. The main reasons you’ll receive an IRS adjusted refund letter from the IRS is because:
After looking over the IRS notice, it’s time to decide whether you need to take action or not. If you agree with your IRS adjusted refund, you typically do not need to reply. However, if you disagree with your notice or if your notice requires you to send in a response, you must reply accordingly. If you’re not sure on how to respond to your IRS notice, you can get help from tax experts or follow these steps below:
Every IRS notice contains relevant information on your IRS refund status and why an adjustment was made. Take time to carefully read your notice and compare it with the tax return you filed. Doing so will allow you to see any errors you may have made or, identify any errors from the IRS.
Some IRS notices are time-sensitive and require you to respond by a precise date. This is normally the case when you owe money. It’s important to respond as soon as possible before the deadline so that you can:
For IRS notices that entail a payment, you must abide and pay as much of the refund as you can. The IRS offers various payment options that work for your financial situation, such as a payment plan or having your account status changed to “Currently Not Collectible.”
Once you’re sure of the amount you owe, you can employ one of the IRS’ many payment methods to satisfy your tax balance. You can pay online, pay in cash at a retail partner, or send in a check or money order. In spite of your situation, the IRS is willing to work with you. However, disregarding this notice will result in you owing more money from penalties and accrued interest.
It’s exceptionally important to maintain a copy of all your tax records. It’s a general tax refund myth only the rich can get audited. IRS audits typically begin three to four months after the filing deadline, but some audits can be performed years after it was received. Keeping a print out of all of your tax returns, notices, and letters will make situations like these easier to handle.
After reviewing the IRS refund adjustment notice, you’re convinced the IRS made a mathematical error. The next step is to gather additional documentation to provide evidence of the IRS’s math error. This can include any receipts or proof of payment. It is vital to respond quickly, the longer you delay in responding, the more challenging it will be to resolve the issue. This is due to the fact that the IRS may need time to process and respond to your request.
For additional guidance and help, when you fill out the contact form at the bottom of the page, one of our tax advisors will get in contact with you to guide you on your next step.
Mistakes happen, and that’s part of life. The IRS is never out to get you, they are simply doing their duty so they can collect taxes that benefit the public as a whole. If you made a mistake on your tax return or want to make corrections to a tax return from the previous year, you can correct this with an amended return. An amended return offers you the opportunity to resolve the problem and claim a more beneficial tax return or make a payment if you realized you filed incorrectly.
Regardless of whether you owe money or are owed money, it’s important to comply so you can rest assured knowing the IRS doesn’t associate you with people like Al Capone. Amended returns also allow you to explain your situation in part III of Form 1040X so they can comprehend why this amendment is occurring. However, once filed, all you can do is wait for a reply. It can take up to 16 weeks for your amended return to be processed, so, if you get antsy you can always check your tax refund status of your amended return online or by calling.
Sadly, you can. There are people out there who use the IRS name to cheat unsuspecting taxpayers into giving them their funds. The IRS has a page where you can report any suspicious activity. The IRS will never contact you through email, text, or social media channels to ask for any information. If you fall victim to one of these scams, report it immediately.
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