CHARLOTTE, N.C. — The Internal Revenue Service (IRS) is mailing letters to millions of people, warning them of a possible error on their tax return.
If you recently received one of these letters, experts say it's important that you read through it. Government officials say it's confusing but it's not a scam.
So what is it all about? Let's connect the dots.
What is a CP12 notice?
According to the IRS website, this means one or more mistakes on your tax return was corrected and it resulted in either a different refund amount or an overpayment when you thought you owed.
Experts estimate about 9 million of these have been sent to Americans.
What does a CP12 notice do?
A CP12 notice informs Americans that there could be an error on their tax return and the IRS is making changes. It could be anything from putting the wrong numbers on your W-2 to leaving off certain withholdings.
Some people are receiving these letters because they qualified for last year's Recovery Rebate Credit, which is a special one-time benefit that most people received in the form of a stimulus check. People who did not receive a stimulus check, or received less than the full amount, may be eligible for the Recovery Rebate Credit.
What you need to do if you get a CP12 notice
If you agree with the IRS' notice, and everything seems to check out, good news. You don't need to do anything. If you don't agree with their changes, you have 60 days to contact the IRS.
The IRS says they may reverse the change for any person who contacts them with 60 days if they provide adequate documentation that justifies the reversal. If you don't contact the IRS within 60 days, you'll lose your right to appeal their decision.
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