CP 16 - Changes to Tax Return, Overpayment Applied to Balance Due - Z Tax & Accounting

The IRS send IRS Notice "CP 16" to inform taxpayer that their Tax Return has been and these changes affect your refund. The notice explains the changes to the tax return and the amount of the overpayment that was applied to your tax balance from prior year returns. 

The first part of a CP16 notice explains that the IRS identified a miscalculation or error on your filed tax return. These are often clerical or mathematical mistakes. For example, errors can occur when calculating deductions or credits, such as claiming the wrong amount for the Child Tax Credit or miscalculating the allowable deduction for student loan interest.

The notice will provide a side-by-side comparison, showing the figures you reported on your Form 1040 and the corrected figures determined by the IRS. The IRS may have received information from third parties, like employers on Forms W-2 and 1099, that conflicts with the information on your return. These discrepancies trigger an automatic correction process.

At Z Tax & Accounting, we specialize in helping clients navigate IRS & State tax debt, back taxes, and audit issues with confidence and professionalism. Our team of experienced IRS Enrolled Agents, admitted to practice before the IRS, provides expert representation for IRS audits, collections, and appeals. Whether you are facing personal or business tax challenges, we are here to protect your rights and help you achieve the best possible outcomes. Call us today at (214) 699-4790.