IRS Notice CP128 – The IRS Applied Your Overpayment and You Still Have a Balance Due
A refund was applied to your unpaid tax balance for another year. A balance still remains.
Type of Notice: Unpaid balance
Most common tax problem area: IRS bill for unpaid taxes
Other tax problem areas: IRS penalties
Why you received IRS Notice CP128
- You filed a tax return with a balance due, which remains unpaid.
- You filed a return for another tax year with a refund due.
- The IRS sent CP128 to notify you that the refund was applied to a prior year’s unpaid balance due. This notice also informs you that you still owe a balance due on a return from a prior year.
Your options to address IRS Notice CP128
- Make arrangements to pay
- Dispute the penalties
- Dispute the taxes you owe
Notice deadline: 21 days
If you miss the deadline: You will owe additional penalties and interest.
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