The opening lines of IRS Notice CP11 state: "Changes to your [year] Form 1040 - Amount due: [$amount] - We found miscalculations on your [year] Form 1040 which affect the following areas of your return . . ." followed by a vague description of the problem.
With Notice CP11 & CP11A the IRS has proposed an adjustment to your return based on information they have obtained from various third parties about you (Banks, Employers, Lenders, etc.) which indicates that you owe more taxes. This information is usually not wrong, but lacks proof to offset it. TaxHelpLaw will show you what documents you need to win! But you only have 60 days to respond.
The IRS also has Notice CP11M for the Making Work Pay or Government Retiree Credit, Notice CP11R for the Recovery Rebate Credit, & Notice CP11T for Itemized Deductions.
Respond to Notice CP11
This is not a bill and not an audit but is a math adjustment based on third party records. The IRS could audit you later. Look carefully at the (obscure) explanation the IRS gives for making these adjustments. Then, go to the line on your return where these items are located to see if any problem is apparent.
If the issue in a Notice CP11 is the calculation of the tax, they may add a section on page 2 which invites you to protest their assessment and challenge them to audit or issue a Notice of Deficiency. The implications of protesting could mean opening up other years to audit or it could mean tying them down to specific agreements if they issue a Notice of Deficiency. It's a risk that must be carefully explored.
If you disagree with the IRS, please follow the Prep Steps for IRS Notice CP11 and see Mr. Hopkins in Colorado Springs, Pueblo or Denver before you act! Any response to the IRS must be very careful & determined. We must offset the IRS information & perhaps file an amended return.
Various IRS Notices CP11:
Notice CP11A:
