CP87B: What It Means When the IRS Flags Your Return
Summary:
The CP87B Notice is issued by the IRS when there is a mismatch between the name and Social Security Number (SSN) on a taxpayer’s tax return. This discrepancy usually occurs due to clerical errors or incomplete information. The notice informs taxpayers about the mismatch and outlines steps they need to take to resolve it. If not corrected, it can delay tax return processing or lead to other issues with the IRS. This article walks you through what a CP87B Notice means, how it affects you, and how to respond effectively.
Receiving a CP87B Notice from the IRS can cause concern, but it’s important to understand that this notice is primarily informational. The IRS sends out a CP87B when they detect that the name and Social Security Number (SSN) on your tax return do not match the records held by the Social Security Administration (SSA). This could result from a simple clerical error, a misspelling, or even a recently updated name after a marriage or divorce. Ignoring this notice can delay your refund or lead to complications in future filings. This article will guide you through understanding the CP87B Notice, its impact, and how to respond promptly to resolve the issue.
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What is CP87B Notice?
A CP87B Notice is an official letter from the IRS that alerts taxpayers to a mismatch between the name on their tax return and the associated Social Security Number (SSN). This notice is commonly triggered when the IRS receives a tax return where the name listed does not align with what the SSA has on file for the corresponding SSN.
While this might seem alarming, the notice is primarily a request for clarification and correction. The IRS aims to prevent identity theft, incorrect tax filings, and delays in processing. It can also prevent problems when the IRS attempts to credit payments, issue refunds, or calculate tax liabilities.
Several factors can cause this mismatch:
– A misspelled name on your tax return.
– A name change due to marriage, divorce, or legal action that was not updated with the SSA.
– Errors or incomplete information provided during the tax return filing process.
– A misspelled name on your tax return.
– A name change due to marriage, divorce, or legal action that was not updated with the SSA.
– Errors or incomplete information provided during the tax return filing process.
Receiving a CP87B Notice should prompt you to act quickly, as failure to resolve this issue could lead to further complications such as delayed refunds or incorrect tax records.
How the CP87B Notice affects you
Receiving a CP87B Notice affects your tax filing in several ways. Here’s what you need to know:
1. Potential Delays in Processing: If your name and SSN do not match, the IRS may place your return on hold until the discrepancy is resolved. This can delay any refunds you are expecting or even result in penalties if unresolved.
2. Future Tax Filing Complications: If you fail to address the CP87B Notice, it could affect future tax filings. The IRS could flag your account for potential errors, leading to increased scrutiny.
3. Impact on Social Security Credits: Because the SSA uses your SSN to track your earnings and Social Security benefits, a mismatch could potentially affect your Social Security earnings record. This could lead to complications when calculating future benefits if the issue persists.
4. Possible Penalties: Although the CP87B is informational, failing to correct your filing could lead to penalties for incorrect tax information or incomplete filings in the future.
It’s essential to respond quickly and follow the IRS’s instructions to prevent these outcomes.
Pro tip
Always compare the name and SSN on your tax return with the information in your Social Security records before filing. This can help prevent issues like receiving a CP87B notice.
What should you do when you receive a CP87B Notice?
Upon receiving a CP87B Notice, it’s crucial to take action to resolve the issue and prevent delays or penalties. Here’s a step-by-step guide on what to do:
- Review the Notice: Read the CP87B Notice carefully to understand the reason for the mismatch. The IRS provides specific details about the discrepancy.
- Verify Your Records: Double-check your tax return and SSA records. Ensure your name and SSN match exactly, including any changes in name due to marriage, divorce, or legal name changes.
- Correct Any Errors: If you made a clerical error, such as misspelling your name or entering the wrong SSN, you can easily correct this by filing an amended tax return (Form 1040X) with the corrected information.
- Contact the SSA: If the issue stems from a name change or incorrect information in SSA records, contact the SSA to update your records. Ensure your name matches their database to prevent future issues.
- Respond to the IRS: In some cases, the IRS may request additional documentation or proof of identity. Follow the instructions in the notice, providing the necessary information and responding within the given timeframe.
Prompt action will prevent processing delays, ensure your tax return is properly filed, and help avoid potential future complications.
Pro tip
Don’t delay in addressing the CP87B notice. Promptly correct any errors and respond to the IRS within the given timeframe to avoid delays in processing your tax return or receiving refunds.
How to respond to the CP87B Notice
Steps to take when responding to a CP87B Notice
Responding to the CP87B Notice quickly is essential. Here’s a breakdown of what to do:
1. Check Your Name and SSN: First, compare the name and SSN on your tax return with your SSA records. Ensure that both match exactly.
2. Amend Your Return If Necessary: If you discover an error on your tax return, file a corrected version using Form 1040X. Include the correct name or SSN as necessary, and ensure the rest of your information is accurate.
3. Update SSA Records: If your name has changed due to marriage, divorce, or another reason, make sure the SSA has the correct information. This step is crucial to preventing future mismatches.
4. Provide Supporting Documents: The IRS may request additional documentation, such as a government-issued ID or marriage certificate, to verify your identity and resolve the issue. Submit these documents as instructed in the notice.
5. Submit Your Response: Ensure you respond to the IRS within the timeframe stated in the notice. Prompt action will help expedite the resolution process.
Other ways to handle a CP87B Notice
If the mismatch in your name and SSN stems from a more complex issue, such as identity theft, you may need to take additional steps:
– Enroll in the IRS Identity Protection PIN (IP PIN) Program: This program helps protect your identity by issuing a unique PIN each year for filing your tax returns.
– Contact the IRS Directly: While mailing responses is common, you can call the IRS directly for assistance if you need urgent help or have specific questions. This could expedite resolving the issue.
– Consult a Tax Professional: If you’re unsure how to resolve the issue or face complex circumstances (e.g., identity theft), consulting with a certified tax professional or tax attorney can provide valuable guidance and ensure you follow the correct steps.
Pro tip
Make sure to keep copies of any notices you receive, along with your responses and supporting documents. This ensures you have a paper trail in case the issue resurfaces or requires further clarification.
Potential penalties or next steps if you don’t respond
Failing to respond to a CP87B Notice can lead to several consequences, including:
- Unprocessed Tax Returns: Your tax return may remain on hold, and any refunds you’re owed will be delayed until the issue is resolved.
- Increased Scrutiny: Ignoring the notice can cause future tax returns to be flagged for errors, increasing the likelihood of audits or additional inquiries.
- Penalties and Interest: Depending on the situation, failing to respond could lead to penalties for incorrect filings or incomplete tax returns. Interest may also accrue on unpaid taxes if this affects your tax liability.
- Identity Theft Risks: If the mismatch stems from identity theft and you fail to address it, the issue could worsen, leading to further complications in your tax filings and credit report.
The best course of action is to address the notice promptly and resolve the mismatch as soon as possible.
What potential outcomes are possible?
Once you respond to the CP87B Notice, the following outcomes are possible:
- If you correct the error: Your tax return will be processed as usual, and any refunds will be issued promptly.
- If you fail to correct the error: The IRS may delay your tax return, impose penalties, or take additional action if the mismatch remains unresolved.
- If identity theft is involved: You may need to take further steps to protect your account, such as enrolling in the Identity Protection PIN program to safeguard your tax information.
In all cases, timely and accurate responses to the CP87B Notice are key to resolving the issue with minimal disruptions.
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Frequently asked questions
Why did I receive a CP87B Notice?
You received this notice because the IRS detected a mismatch between your name and Social Security Number (SSN) on your tax return. This can occur due to clerical errors, name changes, or identity theft.
How do I correct the issue?
You should compare the information on your tax return with your SSA records, file an amended tax return if necessary, and contact the SSA if the mismatch stems from outdated or incorrect information.
What happens if I ignore the CP87B Notice?
Ignoring the notice can result in delays in processing your tax return, penalties, and even identity theft risks if the mismatch is due to fraudulent activity.
Can I fix this issue online?
In some cases, you may be able to correct the mismatch by contacting the IRS online or using their secure online services. However, most cases will require sending a response by mail with supporting documentation.
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.
| 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 CP87B Notice is issued when the IRS detects a mismatch between the name and SSN on your tax return.
- Verify your records with the Social Security Administration (SSA) and correct any discrepancies with the IRS.
- Respond to the notice promptly to avoid delays in tax processing or penalties.
- Failing to resolve the issue can lead to complications such as delayed refunds, penalties, and increased scrutiny on future tax filings.
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