That IRS Letter in Your Mailbox: A Friendly Guide to the IRS CP22A Notice

Receiving a letter from the Internal Revenue Service can be a heart-stopping moment. Your mind races. What did I do wrong? How much do I owe? Before you let panic set in, take a deep breath. That notice, especially if it’s a CP22A, might not be as scary as you think. It’s a situation you can absolutely manage, and we’re here to walk you through it with a clear head and a steady hand. 

At its core, the IRS Notice CP22A is simply a notification. It means the IRS has made changes to your tax return, and as a result of those changes, you now have a balance due. Think of it as an update from the IRS based on information they received, often from a request you made. 

What Exactly Is a CP22A Notice and Why Did I Get One? 

The official title for the CP22A is “Data Processing Adjustment Notice.” This sounds technical, but it usually means the IRS processed a change you requested. The most common reason for receiving a CP22A is that you filed an amended tax return (Form 1040-X) to correct your original filing, and the IRS has now processed that amendment. 

For example, maybe you realized you forgot to report some income, or you found a deduction you missed. You filed an amended return to make it right, and the CP22A is the IRS’ way of saying, “We’ve made the changes you asked for, and here is the new amount you owe.” 

It’s important to understand that this isn't typically a full-blown audit. The legal authority for the IRS to make these adjustments and send this notice comes from the Internal Revenue Code, specifically Section 6201, which gives them the power to assess taxes. The notice is the official communication of that assessment. 

You've Got the Notice. What Now? 

Okay, so the notice is in your hand. The first step is to read it carefully. The CP22A will show the original figures from your return, the changes that were made, and the new calculation of your tax liability. Your next move depends on one simple question: Do you agree with the changes? 

Path 1: You Agree with the Changes 

If you review the notice and it all makes sense—perhaps it perfectly matches the amended return you filed—then the path is straightforward. The IRS notice will have a payment coupon with a due date. Your primary responsibility is to pay the amount you owe by that date. 

It’s also a good practice to update your own copy of your tax return to reflect the changes. This ensures your personal records are accurate and consistent with what the IRS has on file. 

Path 2: You Disagree with the Changes 

What if you read the notice and something seems wrong? Maybe the changes don’t reflect what you submitted on your amended return, or perhaps you never filed an amended return at all and are confused about why your return was changed. In this case, you need to take action. 

Your notice will have a phone number to contact the IRS. You should call them and be prepared to explain why you believe the changes are incorrect. It’s helpful to have a copy of your original return, your amended return (if you filed one), and any other relevant documents in front of you when you call. 

Remember, you have rights as a taxpayer. The Taxpayer Bill of Rights ensures you are treated fairly. One of these rights is the right to challenge the IRS’ position and be heard. If you can't resolve the issue over the phone, you have the right to appeal the IRS’ decision.  

What If I Can't Pay the Full Amount? 

It’s a situation many people face. You agree with the notice, but you simply don’t have the funds to pay the full amount right now. Don’t ignore it! The IRS has several options available to help you manage your tax liability. 

• Installment Agreement: This is a payment plan that allows you to make monthly payments. You can apply for an installment agreement online through the IRS website or by filling out Form 9465, Installment Agreement Request. Keep in mind that while you’re on a payment plan, interest and penalties will continue to accrue on the unpaid balance. 

• Offer in Compromise (OIC): An OIC allows certain taxpayers to resolve their tax liability with the IRS for a lower amount than what they originally owed. This option is generally for those experiencing significant financial difficulty. The IRS will look at your ability to pay, your income, your expenses, and the equity of your assets when considering an OIC. 

• Currently Not Collectible (CNC): If the IRS determines that you cannot afford to pay your taxes and your basic living expenses, they may place your account in CNC status. This temporarily delays collection, but your unpaid taxes do not go away. The IRS will review your financial situation periodically to see if your ability to pay has improved. 

A Word About Interest and Penalties 

Unfortunately, a balance due on a CP22A notice will likely come with some extra costs. The IRS is legally required to charge interest on underpayments. Under IRC Section 6601, interest begins to accrue from the original due date of the tax until it is paid in full. Even if you get on a payment plan, the interest keeps ticking. 

On top of interest, you may also face a failure-to-pay penalty. This penalty is typically 0.5% of the unpaid taxes for each month or part of a month that the taxes remain unpaid, up to a maximum of 25%. 

However, there is a silver lining. The IRS may remove or reduce penalties if you can show you had “reasonable cause” for not paying on time. Reasonable cause is based on all the facts and circumstances of your situation. Events like a death in the family, a serious illness, or a natural disaster could all be considered reasonable cause. It’s important to note that simply not having the money is generally not considered a valid reason on its own, but it can be a contributing factor. 

Watch Our Free Video! 

Reading about tax notices can be overwhelming. That’s why we’ve created a free, easy-to-understand video that breaks down everything you need to know about IRS tax problems. We’ll walk you through your options, explain each section, and give you step-by-step instructions on how to handle it. 

Scan the QR code with your phone or click the button below to watch now! 

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You Don’t Have to Face the IRS Alone 

Navigating the complexities of an IRS notice can feel isolating, but it doesn’t have to be. Understanding your CP22A notice is the first step toward resolving it. Whether you agree, disagree, or simply can’t afford to pay right now, there is a path forward. The key is to be proactive, communicate with the IRS, and understand your rights and options. 

If you’re feeling overwhelmed or unsure about your next steps, we can help. Our team of experienced professionals is here to provide the guidance and support you need to confidently address your tax situation. 

Don’t let an IRS notice disrupt your peace of mind. Book a free, no-obligation consultation with us today. We’ll review your CP22A notice, answer your questions, and help you determine the best course of action.