What If The IRS Says You Owe Taxes? (CP 11)
Did you just get an IRS notice? If so, take a note at the type of notice. It will be listed in the upper right hand corner. Once you know what type of notice you received, please search this site (the one you’re on right now – www.USTaxAidServices.com) and you’ll likely find specific guidance on what to do next.
Usually you don’t want to try to tackle IRS or state audit notices or changes on your own. Now is a good time to bring a professional, if for no other reason then the piece of mind you’re going to get by having someone else deal with the headaches and stress of talking to auditors.
If you receive a CP 11 notice, you owe the IRS taxes. This comes out automatically if there is a miscalculation made on the program that was discovered when the IRS processed your return.
The notice will tell you:
- Why you received the notice
- What the change is
- The steps to take if you disagree
- The steps to take if you agree
The CP 11 notice is generally correct. If you’ve gotten one, it’s because there was a mistake made in the calculation. For example, our CPAs at USTaxAidServices will estimate the amount of underpayment penalty, if applicable, based on when we believe you will make payment. If you make the payment sooner or later, there could be a change.
If you’ve used an off-the-shelf program or your tax preparer had a cheap tax program, there could be a mistake in the program itself. Go back and try to figure out what wrong and decide what you can do different so it doesn’t happen again. The more notices you get, the less negotiation power you have if there is a future dispute with the IRS.
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