CP12 Notice: Refund of Overpaid Taxes
While most people fear receiving mail from the IRS, the CP12 notice is one that you probably shouldn’t fear! This notice means that you can expect a check from the Federal Government in your mailbox in the next couple of weeks (or an adjustment to your original refund amount).
That’s right – while a CP12 notice does mean there was a math error on your return, this error likely resulted in the IRS owing you money.
Keep reading to learn how the CP12 notice works and what you should do if you get one. (If you have questions, IRS Shield is always here to help.)
What is a CP12 Notice?
A CP12 notice is one of the few types of IRS notices that you shouldn’t be upset about seeing in your mailbox. This notice informs you that the IRS has automatically adjusted one or more errors on your tax return (generally in your favor). As a result, you may be receiving a larger tax refund or a refund due to overpayment of your initial taxes.
In short, a CP12 notice generally means that you’ll be receiving a check in the mail from the IRS within 4 to 6 weeks!
What is on a CP12 Notice?
A CP12 notice is usually straight forward and provides you with the information you need to know about why your tax return is being changed and how much money you can expect to receive from the IRS.
The CP12 notice may include the following:
- Summary – includes the adjusted refund you’ll be receiving, a high-level calculation of that summary, and the forms and areas of those forms that have been automatically adjusted.
- What you need to do – instructions on the next steps that you’ll need to take
- Changes to your tax return – a detailed listing of all the changes made to your tax return, including lines that were changed, why they were changed, and how the changes impacted your overall calculations.
In addition to the information listed above, your tax return will also include general information like your social security number, the tax year being impacted, and the notice date.
Will I Receive a Refund Check if I get a CP12 Notice?
In most cases, you will receive a refund check from the IRS for the amount of the adjusted refund that has been listed on the CP12. However, there are two cases where you will not receive a refund check:
- You have outstanding tax debts – If you owe the IRS taxes from a previous tax year, then the IRS will deduct those taxes from the refund amount.
- You disagree with the changes – If you dispute the changes, the IRS will hold off on sending the check until the dispute has been resolved.
What Should I Do if I Receive a CP12 Notice?
If you receive a CP12 notice, the first thing to do is to review the notice in its entirety and ensure that you agree with all of the changes made.
If you agree with the changes, you don’t need to do anything else! You should receive a refund check within 4 to 6 weeks and should keep a copy of the notice for your records.
What Should I Do if I Disagree with a CP12 Notice?
If you disagree with the changes identified on the CP12 notice, you have 60 days from the notice date to notify the IRS. Contacting the IRS about a disagreement will cause them to automatically reverse the change and no longer send a refund check.
You don’t need to provide a justification for the disagreement; however, if the IRS disagrees with your disagreement, then they may audit your account. Therefore, it’s in your best interest to provide supporting documents if you disagree with a CP12 notice.
Your CP12 notice should include information on how to contact the IRS if you do disagree with the document. It’s always best to communicate in writing so you have documentation of what you sent.
What if I Ignore a CP12 Notice?
A CP12 notice is one of the few IRS notices that you can ignore without penalty. If you don’t respond to the notice, then the IRS will send you a refund check in the mail regardless.
How is a CP12 Notice Different from a CP11 Notice?
A CP12 notice is the exact opposite of a CP11 notice. Both indicate that the IRS has automatically corrected an error on your tax form. However, a CP12 notice generally means that you’ll be getting money back from the IRS, while a CP11 notice means that you owe the IRS additional money.
How to Prevent Future Errors on Your Tax Return
It’s always in your best interest to file your tax return accurately. Receiving a CP12 Notice means that you made a mistake on your tax return. While it worked out in your favor this time, the IRS could easily adjust a non-favorable error in the future (or miss an error completely), and you could end up missing out on additional money or overpaying the IRS.
In order to avoid math errors on your federal tax return, it’s best to use an online tax filing software that does all of the calculations and checks for you.
When to Get Tax Help
If you’re disputing a CP12 notice, the last thing you want is to have the IRS audit you. Therefore, if you do plan to dispute the notice, it’s in your best interest to consult a tax professional to ensure you’re providing all the documentation needed to support your dispute.
At IRS Shield, we’ve got your back! Our team of tax professionals can help answer any questions you may have about your CP12 notice and even work with the IRS on your behalf. Sign up to become a member today!