Tax authorities are required to notify you of the smallest adjustment to your federal or state tax liability and any subsequent payments or refunds. A notice of refund adjustment letter from fed or state is only an action item to the taxpayer if the tax authority has recognized an underpayment and is asking for more $. In this case there will be instructions in the letter on how to proceed if you disagree. If you don’t disagree or the amount isn’t enough to waste time researching, you can mail a check or make an on-line payment here.
If the “Notice of Refund Adjustment” or CP12 letter eliminates any interest on underpayment of any tax liability, then consider this is a good letter. No action required on your part. Please file the letter for your records. We don’t need to see a copy.
This material is compiled from sources SST believes to be reliable. The possibility of error does exist. The material is intended only as educational and may omit information on exceptions, qualifications, definitions, and effective dates. The reader should not rely solely on this material but should review original sources to determine the law and applicability for each situation. Neither the author nor Solid State Tax Service, LLC will be responsible for any error, omission, or inaccuracy under any circumstance.