IRS Notice CP16 – Changes to Your Form 1040

The IRS sends CP16 to inform you that your original tax return was changed due to an error. The changes resulted in a refund that was applied to another balance you owed.

View notice image

Type of Notice: Return accuracy

Most common tax problem area: IRS return and account problems

Other tax problem areas: IRS bill for unpaid taxes, IRS penalties

Why you received IRS Notice CP16

  1. You filed a tax return with the IRS.
  2. When processing your return, the IRS discovered an error.
  3. The IRS corrected the error and made an adjustment to your return.
  4. The IRS sent CP16 to explain the adjustment and to notify you that the adjustment resulted in a refund which was applied in part or in full to a balance you owe for another tax year.

 

Notice deadline: 60 days

If you miss the deadline: If you do not dispute the changes on a CP16 within 60 days, the IRS will not reverse the adjustment without substantiation, payment of the additional tax, and the filing of Form 843, Claim for Refund and Request for Abatement.

Want more help?

See your local tax pro for a free consultation.

Letter from the IRS?

Your local H&R Block tax pro can look into it for you.

Schedule a Free Consultation

Or call 855-536-6504

Related Information

How to Handle IRS Tax Return and Account Problems

Learn about IRS return and account problems that you may encounter when filing taxes from the tax experts at H&R Block.

Six Reasons You Might Have Gotten a Notice Instead of Your Refund

Didn't get your expected tax refund? Learn about six possible reasons for this unexpected change from the tax experts at H&R Block.

The IRS Offers Alternatives When You Can’t Pay Your Tax Bill

Get the facts from H&R Block about IRS payment options when you can't pay your tax bill, including short-term extensions, monthly payment plans, and more.

What’s the Best Way to Pay Your Tax Bill

You have options when you owe taxes. Get the facts about the best way to pay your tax bill with help from the experts at H&R Block.

The Four Types of IRS Penalty Relief – and How to Know What’s Best for You

Get the facts from H&R Block about the four types of IRS penalty relief, and which IRS penalty relief option may be best for your situation.