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IRS Notice CP240: IRS changed your payroll tax return

IRS Notice CP240 is a return adjustment letter from the IRS. The income on your employment tax return did not match your W-2, W-2G and 1099-R forms. You may owe more because of that. It explains a change the IRS made while processing your return.

What this letter usually means

The income on your employment tax return did not match your W-2, W-2G and 1099-R forms. You may owe more because of that. Compare the IRS figures with your copy of the return, line by line. The letter explains how to respond if you disagree.

Category: The IRS changed your return

What people usually do first

Pay any balance by the date on the notice, or contact the IRS if you disagree.

What to have ready

What may come next

This letter does not point to a specific follow-up letter. Any later step will be described in mail from the IRS.

Read the IRS page

The IRS letter itself is the final word on what it means for you. Read the IRS page for CP240.

Common questions about CP240

What is IRS notice CP240?

The income on your employment tax return did not match your W-2, W-2G and 1099-R forms. You may owe more because of that.

How long do I have to respond to a CP240 notice?

The date to respond or pay by, if there is one, is printed on your letter. Check it, and read the IRS page for CP240 for more.

Is a CP240 notice a scam?

A real CP240 comes by mail and should match your own records. You can also sign in to your IRS Online Account on irs.gov to see your account directly.

What should I have ready for a CP240 notice?

The CP240 notice, Your employment tax return, Your W-2, W-2G and 1099-R forms, The phone number on the notice.

Scan your letter in the OweRight iPhone app

The OweRight app can tell you what a CP240 letter is and points you to the IRS page for it.

OweRight is not the IRS and does not give tax or legal advice.

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