CP713 Notice: What Is It and How Should You Respond?

Last updated 10/30/2024 by

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Summary:

The IRS CP713 notice is issued when there’s an issue with your tax account, usually related to unpaid balances or discrepancies in prior communications. This notice is a call for immediate attention to resolve the outstanding issue. In this article, we’ll explore what the CP713 notice means, how it impacts you, and the steps you need to take to resolve it efficiently.

Receiving a CP713 notice from the IRS can feel overwhelming. The notice generally indicates that there is an unpaid balance or unresolved tax issue that needs your prompt response. If left unattended, it can lead to penalties, interest, or enforcement actions. By understanding what this notice entails and how to respond, you can address the issue before it escalates. This article will walk you through the entire process, from understanding the notice to resolving the issue efficiently.

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What is IRS letter CP713 notice?

The IRS CP713 notice is sent to taxpayers when the IRS identifies an unresolved balance or discrepancy that needs to be addressed. This notice serves as a reminder that immediate action is required, whether it’s paying the amount owed, providing additional documentation, or clarifying discrepancies. It is essential to review the notice carefully to understand the specific issue in your tax account and the steps required to resolve it.

Common reasons for receiving a CP713 notice include:

Outstanding balances that remain unpaid after prior notices.
Discrepancies between your tax return and IRS records.
Issues with prior payment arrangements, such as missed payments.
Failure to provide requested documents or clarifications on your tax return.

The notice will detail the specific amount owed or the issue that needs to be resolved. It will also outline the deadline for responding or making the payment. Failing to address this notice can result in additional interest, penalties, or enforcement actions like wage garnishments or liens.

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How the CP713 notice affects you

Receiving a CP713 notice can significantly impact your tax account and financial situation. The IRS typically sends this notice when you have an unpaid tax balance or unresolved issue, which could lead to the accrual of interest and penalties over time. Additionally, ignoring the notice can result in more severe actions from the IRS, such as the garnishment of wages, levies on your bank accounts, or tax liens on your property.

Common consequences of ignoring a CP713 notice include:

Increased interest and penalties on unpaid balances.
Delayed processing of your tax return or refund, if applicable.
Wage garnishment or levies on your bank account.
Potential enforcement actions, such as property liens or levies.

To avoid these outcomes, it is crucial to respond promptly to the CP713 notice. This involves reviewing the notice carefully, understanding what is required of you, and taking the appropriate steps to resolve the issue before the deadline.

Pro tip

When dealing with IRS notices like CP713, it’s important to keep detailed records of all communications. This includes copies of the notice, any payments made, and correspondence with the IRS.

Steps to take when you receive a CP713 notice

When you receive a CP713 notice, the first thing to do is not panic. Follow these steps to address the issue and avoid further complications:

Review the notice: Carefully read the notice to understand why it was issued and what is required to resolve the issue. Pay attention to deadlines and any additional documentation or payments requested.
Check your records: Compare the information in the notice with your tax records to identify any discrepancies. Ensure that any payments you’ve made are correctly reflected.
Gather required documentation: If the notice requests additional documents, make sure to gather and submit them according to the instructions provided.
Respond promptly: Submit your response by the deadline provided, either through mail or electronically. If the issue involves an unpaid balance, you may need to set up a payment arrangement or pay the full amount.
Track your response: Retain copies of all documents you submit and consider using certified mail to track your correspondence with the IRS.

Pro tip

When sending documents or payments to the IRS, using certified mail with a return receipt will help ensure your submission is tracked and documented.

How to respond to the CP713 notice

Steps to take when responding to a CP713 notice

Once you’ve reviewed the CP713 notice and gathered the necessary documents, it’s time to submit your response. Here’s a step-by-step guide to ensure you’re following the correct process:

Identify the specific issue: The notice will explain the outstanding issue, whether it’s an unpaid balance or a request for further documentation. Pay close attention to the details.
Submit payments or corrections: If you owe money, follow the payment instructions in the notice. If corrections or clarifications are needed, submit the requested documents or corrected forms.
Use secure methods for submission: The IRS often allows you to submit responses electronically or via mail. Always ensure that your forms are signed, complete, and sent through a reliable method such as certified mail.
Contact the IRS if you have questions: If you’re unclear about any part of the notice or how to respond, don’t hesitate to contact the IRS or seek the help of a tax professional.

Additional ways to handle a CP713 notice

In some cases, the IRS may recommend setting up a payment plan if you’re unable to pay the balance in full. The IRS offers options like the **Installment Agreement** for taxpayers who need more time to pay. If your notice involves identity verification or suspected fraud, the IRS may also direct you to enroll in the **Identity Protection PIN (IP PIN) program** for added security in future tax filings.

For taxpayers who need immediate assistance, visiting an IRS office or calling the IRS directly may help resolve the issue more quickly. You can also access their **online portal** to submit documents and track the status of your response.

Further support for handling CP713 notice issues

If you’re unsure about how to proceed after receiving a CP713 notice, there are several resources available to help you navigate the situation:

Consult a tax professional: Working with a CPA or tax attorney can be especially helpful if you’re facing complex tax issues or potential penalties.
Visit the IRS website: The IRS site offers detailed resources and FAQs to help you understand your notice and resolve issues promptly.
Taxpayer Advocate Service: This is a free service provided by the IRS for individuals experiencing unresolved tax problems, especially those causing financial hardship.

Pro tip

If you’ve been a victim of identity theft or your tax records were compromised, the IRS’s Identity Protection PIN (IP PIN) program offers added security.

Consequences of not responding to a CP713 notice

Ignoring a CP713 notice can have serious financial and legal consequences. The IRS may escalate the issue if you fail to respond, which can lead to enforcement actions and increased penalties. Common consequences include:

Tax penalties: Unpaid balances will accrue interest and penalties over time, increasing the amount you owe.
Refund delays: Any potential refund you may be owed will be delayed until the issue is resolved.
Enforcement actions: In severe cases, the IRS may take enforcement actions such as wage garnishments, tax liens, or levies on your property or bank account.

It’s essential to address the CP713 notice as soon as possible to avoid these negative outcomes. Prompt action will help resolve the issue efficiently and prevent further complications with your tax account.

Potential outcomes after you respond

After you respond to the CP713 notice, the IRS will review your submission and determine the next steps. There are a few possible outcomes depending on the nature of your response and the issue outlined in the notice:

If the issue is resolved: Once you provide the required documentation or make the payment, the IRS will process your response and resolve the issue. If everything is in order, your tax account will be updated, and any pending refunds will be issued.
If more information is needed: In some cases, the IRS may request additional documents or clarifications. It’s important to respond to these follow-up requests promptly to avoid delays.
If corrections are required: If discrepancies are found, the IRS may ask you to correct and resubmit documents. This might involve filing an amended tax return or sending additional paperwork.
If identity theft is suspected: If the IRS suspects fraud or identity theft, they may take steps to protect your account, such as enrolling you in the Identity Protection PIN (IP PIN) program or requiring additional verification.

Responding promptly and accurately is crucial to ensuring that your tax account remains up to date, and any penalties or interest are minimized. If the issue is resolved, you can expect a confirmation from the IRS, and any pending refunds will be processed accordingly.

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Frequently asked questions

What should I do if I lost my CP713 notice?

If you’ve misplaced your CP713 notice, don’t worry. You can still address the issue by contacting the IRS directly. The IRS will provide details about the notice and the required steps to resolve the issue. Make sure to have your Social Security Number (SSN) or taxpayer identification number (TIN) on hand when you call.

Can I request an extension to respond to the CP713 notice?

Yes, in some cases, the IRS may allow you to request an extension if you are unable to gather the necessary documents or make the required payment within the given timeframe. Be sure to contact the IRS as soon as possible and communicate your situation before the deadline passes to avoid penalties.

Will responding to the CP713 notice trigger an audit?

Receiving a CP713 notice does not necessarily mean you are being audited. The notice is typically a request for further information or clarification. However, if discrepancies in your tax filings are discovered, failure to resolve them could potentially increase the risk of an audit in the future. It’s always best to respond accurately and thoroughly to avoid further scrutiny.

What should I do if I disagree with the CP713 notice?

If you believe the IRS issued the CP713 notice in error or if you disagree with the information provided, it’s important to contact the IRS promptly to explain your situation. You may need to provide supporting documentation to clarify the issue. Consulting a tax professional can be helpful in ensuring that your response is properly prepared and submitted.

How long does it take for the IRS to process my response to the CP713 notice?

The time it takes for the IRS to process your response can vary depending on the complexity of the issue and how you submit your documents. If you respond electronically, the processing time may be faster, often taking a few weeks. If you mail your response, it can take several weeks or even months for the IRS to review and resolve the issue. Always track your submission and follow up if you don’t hear back after a reasonable period.

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

The CP713 notice is issued by the IRS when there is an unresolved balance or tax issue that requires immediate attention.
Failure to respond promptly can result in penalties, interest, or even enforcement actions such as wage garnishment or tax liens.
It’s important to carefully review the notice and provide the required documentation or payment before the stated deadline to avoid further complications.
Consulting a tax professional or using IRS resources can help resolve any complex tax issues related to the CP713 notice.

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