CP10A Notice: Earned Income Tax Credit Error

If you’ve received a CP10A Notice, the IRS believes you made a mistake on your Earned Income Tax Credit and owe more tax than you claimed. The refund you asked to apply towards next year’s estimated taxes is now lower.

Why does the IRS send CP10A Notices?

The IRS sends CP10A Notices for miscalculations. You may have missed a step when completing your tax return, checked the wrong box, or entered something in the wrong line.

Because you originally claimed a refund that is high enough to cover the additional tax, you don’t need to pay more now. However, less was applied to your estimated taxes for next year, and you may need to make an additional estimated tax payment.

What’s the difference between a CP10A, CP10, CP11, and CP11A Notice?

These notices generally mean that you made a mistake and owe more money. Each has a slightly different purpose.

 Pay NowCheck Your Estimated Taxes
Earned Income CreditCP11ACP10A
Other MistakesCP11CP10

Related: IRS Notice CP12 Changes to Your Form 1040

How can you verify a CP10A Notice?

Your CP10A will be about something you included on your tax return. If it’s talking about deductions or credits you never heard about, it may be a scam. The one exception might be if it says you missed something, but that item should apply to your tax situation.

Your notice will look like this example on the IRS website. You can also go to irs.gov and look up the phone number to call. Never call the phone number on a notice you aren’t sure about, because if it’s a fake, the number will go to the scammers.

Should I agree with a CP10A Notice?

When you receive your CP10 Notice, carefully read it and match it up to your tax return. If you see an obvious mistake and fully understand why the IRS is right, you’ll likely want to go ahead and agree with the IRS.

What if I’m not sure or disagree?

The IRS may not always be right. In addition, just because you made an error doesn’t mean you truly owe that tax. The IRS may agree that you don’t owe money after you fix the error and/or supply additional documentation.

You can either follow the instructions on the CP10 Notice to respond, or you can hire an Enrolled Agent or other tax professional to help you. Some CP11s require very simple fixes, while others are more complicated, so whether you need help depends on how well you understand what the IRS changed and your comfort level in dealing with them.

Conclusion

If you receive a CP10A notice, check the IRS’s math to see if you actually owe more. If you think the IRS is wrong, you can respond to the notice or get help from a tax professional.

 

Disclaimer: This post is provided for general information only. The information may be outdated or may not fully cover the unique circumstances of your specific situation. Always consult with an appropriate professional before making important decisions.

Leave a Comment

All comments are public and may be posted with or without edits. Don't include any sensitive information. This is not the IRS — I did not send you a letter or hold your refund. Click here if you need professional advice about a specific situation.

1 thought on “CP10A Notice: Earned Income Tax Credit Error”

  1. NOTICE NAME CP12 SSN [REMOVED] TAX 2021: YOU HAVE MADE A MISTAKE ON MY REFUND. CHECK THE STATUS. CALLER ID [REMOVED].

    Reply