Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP2501
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The income or payment information reported to the IRS doesn't match the information you reported on your tax return. This discrepancy may cause an increase or decrease in your tax or may not change it at all.
- What should you do if you receive this notice?
- Read your notice carefully. It explains the information the IRS received, how to respond, and what will happen if you don’t respond.
- Respond to the notice. Complete and return the response form and state whether you agree or disagree with the notice. You can submit your response by:
- Mail using the return address on the enclosed envelope, or
- Fax your documents to the fax number in the notice using either a fax machine or an online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies.
- If you agree with the information, follow the instructions to sign the response form. The IRS requires both spouses’ signatures if you filed married filing jointly.
- If you disagree, complete and return the response form. Provide a signed statement explaining why you disagree and supply any documentation, such as a corrected W-2, 1099 or missing forms, to support your statement.
- If the information reported to the IRS is not correct, contact the business or person who reported the information. Ask them for a corrected document or a statement to support why it is in error, then send the IRS a copy with your response.
- Respond by the due date shown in the notice. If you don’t, the IRS will continue processing their case and send you a CP2000 Notice for the proposed amount due.
FAQs & Additional Information
- Why did I receive the notice? The IRS received information from a third party, such as employers or financial institutions, which doesn't match the information you reported on your tax return.
- Is the notice a bill? No. The notice is a proposal and informs you of a discrepancy between the information the IRS received, and the information reported on your return. If the discrepancy remains unresolved, or they don’t receive a response to the notice, you may receive a subsequent notice and a bill at a later date.
- What do I do if the information reported to IRS is incorrect? Contact the business or person who reported the information. Ask them for a corrected document or a statement to support why it is in error, then send the IRS a copy with your response.
- How can I get a transcript or copy of my original return?
- You can request a return transcript on the IRS' Get Transcript page. You can also get one by calling the IRS' automated phone application at 800-908-9946 or by completing and sending them a Form 4506-T, Request for Transcript of Tax Return.
- You can get a copy of your return from your tax preparer if you used one. Otherwise, you can get a copy of your return by completing and sending the IRS a Form 4506, Request for Copy of Tax Return. They charge a fee for tax return copies.
- What can I do if the information is wrong because someone else is using my name and Social Security number?
- You can complete and send Form 14039, Identity Theft Affidavit, to the IRS along with the completed response form. You can also go to their identity theft central webpage to find out more about what you can do.
- You don't need to file an amended return, however, if the information in the notice is correct, or if you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return, and return it with a completed response form. If you choose to file an amended return, write "CP2501" on top of your return and attach it behind your completed response form. Send the information in the envelope provided or fax it to the number shown on the notice.
- You can request help at an IRS Taxpayer Assistance Center.
- Why did it take you so long to contact me about this matter? The IRS' computer systems match the information you report on your tax return with information reported to IRS by third parties; such as financial institutions, employers, and other businesses. Due to the complexity of the matching process, it can take months to complete.
- Can I call the IRS to correct my return if I reported the information incorrectly? Yes, you can call the IRS. Call volumes may be high, and it might take some time to reach a representative. They can generally accept your information over the phone for incorrectly reported information. If the information you provide over the phone isn't enough to resolve all the issues, you should mail or fax a signed statement explaining your disagreement and include any documentation that supports your position.
- How can I find an IRS Taxpayer Assistance Center?
- IRS Taxpayer Assistance Centers are located throughout the country. The IRS website can help you find the center nearest to you.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
- About the notice - https://www.irs.gov/individuals/understanding-your-cp2501-notice
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
