CP561B Notice: What It Means When Your Tax Info Is Flagged

Last updated 11/01/2024 by

Edited by

Fact checked by

Summary:

The CP561B Notice is a document issued by the IRS when there’s an error with a taxpayer’s Social Security number or other account details. It can occur due to discrepancies or potential issues like identity theft or administrative mistakes. The notice aims to inform taxpayers that action is needed to rectify the problem and provides instructions on how to resolve the issue effectively, ensuring that tax returns are processed and refunds are not delayed.

Receiving a notice from the IRS can be unsettling, especially when it involves issues related to your tax return or Social Security number. One such notice is the CP561B, which is sent when there’s a problem or discrepancy with your account. Whether it’s due to identity theft, administrative errors, or mismatched records, responding to the CP561B notice promptly is crucial. Doing so ensures that your tax filings are processed smoothly, preventing delays in returns or refunds. This article will walk you through what a CP561B notice is, how it affects you, and the steps you should take to resolve the issue.

Struggling with IRS notices? If you’ve received an IRS letter and aren’t sure how to handle it, you might want to explore professional tax relief options. Optima Tax Relief has helped thousands of people resolve their tax issues and get back on track with the IRS. Learn more about how they can assist you with your situation.

Get Competing Personal Loan Offers In Minutes

Compare rates from multiple vetted lenders. Discover your lowest eligible rate.

Get Personalized Rates

It's quick, free and won’t hurt your credit score

What is CP561B Notice?

The CP561B Notice is sent by the IRS when there’s a significant issue concerning your Social Security number or tax account information. This notice typically highlights that the IRS has identified a problem with the data associated with your taxpayer account, which may prevent them from processing your tax return or issuing a refund.

These issues can stem from various causes, such as identity theft, discrepancies between IRS records and Social Security Administration (SSA) data, or administrative errors. For example, if your name or SSN on your tax return does not match the records from the SSA, the IRS may issue a CP561B notice to alert you about the problem. It also serves as a security measure to safeguard taxpayers from potential fraud or misuse of their information.

If you receive this notice, it’s vital to address the problem immediately to avoid further complications with your tax filings.

How the CP561B Notice affects you

The CP561B Notice can have a significant impact on your tax situation. Essentially, it means that there’s a problem preventing the IRS from processing your tax return. This issue could delay your refund or cause complications in future tax filings if left unresolved.

When the IRS identifies a potential issue with your Social Security number, they may lock your account to prevent fraudulent activity. While this measure is designed to protect you, it can create inconvenience if the error was due to a clerical mistake or mismatched records.

Ignoring the notice can lead to long delays in receiving your tax refunds, and in some cases, it could even result in penalties if the issue affects your ability to file taxes accurately. To avoid these complications, it’s essential to take immediate action upon receiving a CP561B notice.

Pro tip

Before responding to the CP561B Notice, make sure all your tax details are accurate. Double-check your Social Security number and personal information to ensure everything matches the IRS and SSA records.

What should you do when you receive a CP561B Notice?

Upon receiving a CP561B Notice, the first thing you should do is carefully read the notice to understand the issue that has been flagged. The IRS will outline the specific problem and provide steps to resolve it. Here are some key actions to take:

Review the notice thoroughly: Make sure you fully understand why the notice was sent and what information the IRS has flagged as incorrect or missing.
Verify your information: Double-check your tax return and Social Security number for any errors. If you spot a mistake, such as a misreported SSN, it’s important to correct it promptly.
Contact the Social Security Administration (SSA): If the issue relates to your Social Security number, contacting the SSA to confirm your details can help clear up any discrepancies in their records.
Respond to the IRS: Depending on the instructions in the CP561B notice, you may need to submit additional documentation, such as proof of identity, to resolve the issue.
Send the required documentation: Include any requested documents, such as a copy of the CP561B Notice and government-issued identification, when responding to the IRS.

Acting quickly ensures that the IRS can resolve the issue, unlocking your account and allowing your tax return to be processed without further delays.

Pro tip

When mailing documents to the IRS, always make copies of everything you send. This includes your CP561B Notice, identification, and any correspondence. It’s important to have backups in case anything gets lost.

How to respond to the CP561B Notice

Steps to take when responding to a CP561B Notice

When responding to the CP561B Notice, it’s important to act promptly to avoid delays in processing your tax return. Begin by reviewing the notice to understand the problem and what specific action is required. The IRS will typically provide clear instructions on how to proceed.

In many cases, the IRS will ask you to verify your information with the SSA, especially if there’s a discrepancy involving your Social Security number. After you’ve confirmed your details with the SSA, gather the necessary documents to send to the IRS. This usually includes:

1. A copy of the CP561B Notice.
2. A written request to update your account or resolve the issue.
3. A photocopy of a government-issued ID, like your driver’s license or passport.

Make sure to follow the instructions in the notice on where to send these documents, as timely and correct submission will expedite the resolution process.

Additional measures to consider

If you suspect that identity theft may be involved, it’s important to take extra precautions to secure your tax account. One option is to enroll in the IRS’s Identity Protection PIN (IP PIN) program, which assigns you a unique PIN to use when filing your tax returns. This additional layer of security helps prevent unauthorized use of your Social Security number.

You can also consider contacting the IRS directly via their helpline if you need assistance or believe the issue may take longer to resolve. In some cases, a phone call can help clarify the problem and ensure that your tax returns are processed as quickly as possible.

Further support options for addressing the CP561B Notice

If you’re unsure how to proceed after receiving a CP561B Notice, there are several resources available to assist you. These include:

Tax professionals: Consulting a certified public accountant (CPA) or tax attorney can be extremely helpful, especially if the issue is complicated or if you suspect identity theft is involved. A professional can guide you through the process of correcting the issue and help you communicate effectively with the IRS.
IRS resources: The IRS website provides detailed information and resources to help you understand and respond to notices like the CP561B. You can also reach out to the IRS helpline for more personalized support.
Taxpayer advocate service: If you’re having difficulty resolving the issue on your own, consider reaching out to the Taxpayer Advocate Service (TAS), an independent organization within the IRS that helps taxpayers navigate issues with the agency.

Professional guidance can be invaluable if your situation is complex or if resolving the issue takes longer than expected.

Pro tip

For peace of mind, send your response to the IRS via certified mail with a return receipt. This ensures you have proof that the IRS received your documents, which can be critical in resolving any disputes.

Potential penalties or next steps if you don’t respond

Failing to respond to a CP561B Notice can lead to serious consequences, including delays in receiving your tax refund or penalties for unresolved issues. Some potential outcomes include:

Delayed tax returns: Your tax return will remain unprocessed until the issue is resolved, leading to significant delays in receiving any refunds you’re owed.
Penalties and interest: If the issue affects your ability to file your taxes on time, you may be subject to penalties and additional interest, which could increase your overall tax liability.
Enforcement actions: In extreme cases, the IRS may take enforcement actions, such as wage garnishment or fines, if the issue is not addressed within a reasonable timeframe.

To avoid these penalties, it’s crucial to respond promptly and follow the steps outlined in the CP561B notice.

What potential outcomes are possible?

Once you respond to the CP561B Notice and provide the necessary documentation, several outcomes are possible, depending on the nature of the issue:

If the problem is resolved: Your account will be unlocked, and the IRS will process your tax return as usual, allowing you to receive any refunds owed to you.
If the IRS identifies an error: The IRS may update their records to reflect the correct information and remove any locks on your account.
If identity theft is involved: The IRS may take additional measures to protect your account from further fraudulent activity, including issuing an Identity Protection PIN (IP PIN).

In any case, responding promptly helps to minimize disruption to your tax filings and ensures that the issue is addressed in a timely manner.

Looking for the best way to reduce your tax burden? We’ve compiled a list of the Best Tax Relief Companies to help you navigate tax challenges and save money. Click here to discover trusted experts who can assist you with tax resolution, IRS negotiations, and more!

Frequently asked questions

Why did I receive a CP561B Notice?

The IRS sent you a CP561B notice because there was a discrepancy or potential error with your Social Security number or account information. This could be due to identity theft, incorrect data, or mismatches between IRS and SSA records.

How do I unlock my account?

To unlock your account, follow the instructions in the CP561B notice. This usually involves verifying your information with the Social Security Administration and submitting identification documents to the IRS.

What happens if I ignore the CP561B Notice?

Ignoring the notice can lead to delays in processing your tax return and receiving any refunds you are owed. It could also result in penalties or additional interest if the issue affects your ability to file taxes on time.

Can I resolve the issue online?

In some cases, the issue can be resolved online through the IRS’s secure portal. However, you may still need to submit physical documentation depending on the nature of the issue.

Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.

IRS Letter or Notice Number

Notice Description

CP01	The IRS verified your claim of identity theft and will monitor your account.
CP01H	The IRS received a tax return with a social security number that belongs to a dead person.
CP02H	Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma.
CP03C	You received the First-Time Homebuyer Credit for a house you purchased.
CP04	You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice.
CP08	You may be entitled to additional money due to the Additional Child Tax Credit.
CP10	Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed.
CP10A	Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed.
CP11	You owe money because the IRS amended your return due to a miscalculation.
CP11A	Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed.
CP11M	Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed.
CP12	You are due a bigger refund because the IRS corrected one or more mistakes on your tax return.
CP12A	The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return.
CP12E or CP12F	The IRS corrected a miscalculation on your return.
CP12M	The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return.
CP12R	The IRS made changes to the computation of the Rebate Recovery Credit on your return.
CP13	The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero.
CP13A	The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero.
CP13M	The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero.
CP13R	The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero.
CP14	You owe money on unpaid taxes.
CP16	The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts.
CP21A	You owe money due to the changes you requested that the IRS make on your tax returns.
CP21B	You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks.
CP21C	The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero.
CP21E	As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes.
CP21I	The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP22A	The IRS made the changes you requested, and you owe money as a result.
CP22E	As a result of your recent audit, the IRS changed your tax return, and you now owe money.
CP22I	The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes.
CP23	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes.
CP24	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes.
CP24E	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes.
CP25	The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero.
CP31	You need to update your address because your refund check was returned to the IRS.
CP45	The IRS was unable to apply your overpayment to your estimated tax as you requested.
CP49	The IRS used all or part of your refund to pay a tax debt.
CP53	Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit.
CP57	The bank declined your payment, so the IRS was unable to draft funds from your bank account.
CP71	A reminder of the amount you owe in tax, penalty, and interest.
CP71A	A reminder of the amount you owe in tax, penalty, and interest.
CP71C	A reminder of the amount you owe in tax, penalty, and interest.
CP71D	A reminder of the amount you owe in tax, penalty, and interest.
CP88	The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax.
CP90	The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing.
CP91	The IRS will levy up to 15% of your social security benefits for unpaid taxes.
CP120	The IRS needs documentation of your tax-exempt status.
CP120A	Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years.
CP130	You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed.
CP152	The IRS received your return.
CP153	The IRS will send your refund by mail because your direct deposit did not go through.
CP161	You have an unpaid balance due to the IRS.
CP166	Your monthly payment to the IRS did not go through due to insufficient funds in your bank account.
CP178	You may no longer owe excise tax because your tax return filing requirements changed.
CP231	You need to update your address because your refund was returned to the IRS.
CP259	You did not file the business tax return identified in the notice.
CP259A	You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard).
CP259B	The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259C	The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation.
CP259D	You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return.
CP259E	You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP259F	The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return.
CP259G	The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.
CP259H	As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax.
CP276A	You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time.
CP276B	The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time.
CP297	The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP297A	The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing.
CP298	The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes.
CP501	You have a balance due on one of your tax accounts.
CP503	You have an unpaid balance on one of your accounts, and the IRS has not heard from you.
CP504	You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe.
CP504B	You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe.
CP521	A reminder that you have an installment agreement payment due.
CP523	You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets.
CP601	Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas.
CP603	No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas.
CP604	Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda.
CP604B	Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda.
CP621	Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente.
CP623	Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo.
CP711	Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones.
CP721	Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP722	Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos.
CP771	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP772	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP773	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP774	Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses.
CP959	Usted no radicó su planilla de contribución de negocios identificada en este aviso.
CP2000	The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due.
CP3219A	The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax.
CP3219N	The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days.
Letter 0012C	The IRS needs additional information to process your tax return.
Letter 0484C	The IRS wants a completed
Letter 0525	Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed.
Letter 531	IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return.
Letter 0668D(LP 68)	The IRS released their levy.
Letter 0549C	Your tax bill was paid.
Letter 0681C	The IRS accepted your payment proposal. However, this is not a formal Installment Agreement.
Letter 0757C	You did not adhere to the terms of your Installment Agreement.
Letter LT 11	The IRS plans to seize your property or rights to property.
Letter 1058	The IRS has not received your payment. It plans to seize your property or rights to property.
Letter 1615 (LT 18)	You must respond to the IRS within 10 days of this notice regarding past due tax returns.
Letter 1737 (LT 27)	Complete and sign Form 433F, Collection Information Statement.
Letter 1961C	Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify.
Letter 1962C	Your application for a
Letter 2050 (LT 16)	The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed.
Letter 2257C	The IRS is providing the payoff amount that you requested.
Letter 226-J	An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP).
Letter 2271C	A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information.
Letter 2272C	An IRS letter explaining why your request to pay the balance due in installments was declined.
Letter 2273C	A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included.
Letter 2318C	A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged.
Letter 2357C	The IRS is admitting that it did not send you the balance due notices that it should have.
Letter 2603C	The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property.
Letter 2604C	The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction.
Letter 2761C	The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer.
Letter 2789C	An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid.
Letter 2840C	Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify).
Letter 3030C	Provides an explanation of the tax, penalty, and interest still due on your account.
Letter 3127C	A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities.
Letter 3174	A reminder of taxes due after the IRS has sent a Notice of Intent to Levy.
Letter 3217C	The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify).
Letter 3228 (LT 39)	A request to pay the balance due within 10 days using the envelope provided.
Letter 3500	The IRS has received your documents, and it needs additional time to review them.
Letter 3572	Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment.
Letter 4883C	The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately.
Letter 4903 (LT 26)	You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response.
Letter LP 47	The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address.
Letter LP 59	The IRS has not received a response to the notice of levy it previously sent.
Audit Letter 2205	The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit).
Letter 915	You recently underwent an audit, and the IRS informs you that you now owe taxes.

Key takeaways

A CP561B Notice indicates a problem with your Social Security number or tax account information.
Respond promptly by verifying your information with the SSA and submitting identification documents to the IRS.
Ignoring the notice can delay tax returns and result in penalties.
Seek help from tax professionals or the Taxpayer Advocate Service if you need assistance resolving the issue.

Show Article Sources

Share this post:

Table of Contents