IRS CP123 Notice Breakdown — What It Means for Your Tax Adjustments

*Title: Understanding IRS Notice CP123: Corrections to Your Tax Return*

*Introduction:*
Welcome to our guide on IRS Notice CP123. If you've received a similar notice, this video will help you understand why it was sent, what it means, and what actions you might need to take.

*What is IRS Notice CP123?*
Notice CP123 is sent by the IRS when they have made corrections to your tax return due to miscalculations they've identified. This notice is important because it informs you about adjustments made and their impact on your tax liability.

*Key Details in the Notice:*
*Tax Period and Notice Date:* The notice will specify the tax period for which the corrections were made, for example, December 31, 2016, with a notice date of January 8, 2018.
*Corrections Made:* The IRS might adjust figures like the total tax deposits or tax owed based on their findings.
*Amount Due:* In this example, the adjusted amount due is $0.00, meaning you neither owe additional money nor are due a refund after the corrections.

*What Should You Do?*
1. *Review the Changes:* Compare the IRS's adjustments with your tax return to understand the corrections.
2. *No Action Needed If You Agree:* If you agree with the corrections, you don't need to respond to the IRS.
3. *Disagree With the Changes:* If you don't agree, contact the IRS at the provided phone number with your account information ready for discussion. You can also write to them if needed.

*Penalties:*
The notice might also detail any penalties assessed, such as a failure-to-file penalty. Understanding these penalties is crucial, and if you believe they were mistakenly applied, you can request a reconsideration.

*Additional Resources:*
For further clarification or actions like requesting penalty abatement, the IRS provides contact information and suggests keeping the notice for your records.

*Conclusion:*
Receiving IRS Notice CP123 means the IRS has adjusted your tax return to correct errors. It's important to review these changes carefully and respond if you disagree with the corrections made. Always keep such notices for your records and refer to the IRS or a tax professional if you need assistance.

*Remember:*
This video is based on a template example of an IRS notice. The figures and details are for illustrative purposes and may not apply to your specific situation.

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