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

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.

Back to IRS Audits & Representations

IRS ref: https://www.irs.gov/individuals/understanding-your-cp16-notice