The Internal Revenue Service alerted taxpayers and tax professionals in an email Friday about an interest calculation error on certain notices mailed the weeks of July 1 and July 8.
Later this month, the IRS said it will be sending a special mailing to the recipients of the notices.
The IRS admitted it discovered errors in the CP2000 notices during a two-week period this July. The notices contained an incorrect calculation on the interest owed on proposed taxes from under-reported income. The interest figures were lower than they should be. The IRS said it has corrected the issue for future mailings.
It advised taxpayers to follow the directions on the letter it will be sending taxpayers this month about the error. They will be encouraged to either call a special toll-free number or write to the IRS to receive the corrected interest amount.
A CP2000 notice shows proposed changes to income tax returns based on a comparison of the income, payments, credits and deductions reported on a tax return with information reported by employers, banks, businesses and other payers, the IRS noted. The CP2000 also reflects any corrections made to an original tax return during processing.
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