IRS CP24 Notice - What are the Next Steps After Receiving This Letter?

The CP24 notice is basically the IRS telling you they found a discrepancy between the income you reported and what was reported to them by employers/companies. It's actually pretty common and nothing to panic about. First, carefully review the notice and compare it with your tax return. Check if you really did miss reporting that side gig income. If the IRS is correct, paying promptly will stop additional interest from accumulating. You can pay online through the IRS Direct Pay system. If you believe the IRS made a mistake, you have the right to dispute it. There should be contact information on the notice - usually a phone number to call. You'll also need to send a written response explaining why you disagree, along with any supporting documentation (like your tax return and income statements showing you did report everything correctly). Don't ignore it hoping it'll go away - the IRS is pretty persistent about these things. But also don't stress too much - these notices are routine and straightforward to resolve!

I had a similar situation last year and was pulling my hair out trying to figure out what to do. I eventually found this service called taxr.ai (https://taxr.ai) that really helped me make sense of my CP24 notice. Instead of trying to interpret the IRS jargon myself, I just uploaded my notice and tax documents to their system. Their AI analyzed everything and gave me a clear explanation of what the issue was (turned out I had forgotten to report some dividend income from an investment account I rarely check). The tool also guided me through my options and helped me prepare a response. Saved me hours of stress and confusion, honestly. Might be worth checking out if you're not sure how to proceed.

Following up on my question about taxr.ai - I decided to try it with my own CP24 notice (got one last month for supposedly unreported freelance income). The service was actually really helpful! It identified that the IRS was counting income twice - some money that was paid to me through both PayPal and direct deposit. The analysis showed exactly where the double-counting happened and helped me prepare a response with the right documentation. I just got confirmation yesterday that the IRS accepted my explanation and I don't owe the additional tax they initially claimed (saved me about $1,100). Definitely worth checking out if you're dealing with one of these notices.

If you're having trouble reaching anyone at the IRS about your CP24 notice (which is super common these days), I found this service called Claimyr that actually gets you through to a human being at the IRS without the ridiculous hold times. I spent 3 days trying to call about my CP24 before discovering https://claimyr.com - they somehow get you in the priority queue and then call you when an agent is about to pick up. You can see how it works here: https://youtu.be/_kiP6q8DX5c When I finally talked to an actual IRS person, they explained exactly what was missing from my return and how to properly respond. Saved me from just blindly paying the amount they were asking for, which turned out to be calculated incorrectly anyway.

Ok I need to eat my words. After posting that skeptical comment yesterday, I decided to try Claimyr as a last resort for my own tax notice situation. I've been trying to reach the IRS for TWO WEEKS about an incorrect CP24 notice. Used Claimyr this morning and got connected to an IRS agent in 37 minutes. The agent confirmed there was an error in their system and they're now correcting my account. I'm honestly shocked this worked. Would have spent another week trying to call them myself. Whatever technology they're using to get through the queue actually works.

Don't forget to check if your state tax return is affected too! When I got a CP24 for unreported income, I had to file an amended state return as well since the missing income affected both federal and state taxes. If you don't update your state return after resolving the federal issue, you might get a similar notice from your state tax department a few months later (which happened to me and was another headache to fix).

I ignored a CP24 notice once thinking it was no big deal. BIG mistake. The penalties and interest kept growing, and eventually they sent a CP504 threatening to levy my bank accounts. Had to set up a payment plan and ended up paying way more than the original amount. Whatever you do, don't just throw the letter in a drawer and forget about it!

I went through this exact same situation about 6 months ago with a CP24 notice for around $750. The anxiety was real! Here's what I learned that might help: First, take a deep breath - these notices are super common and usually straightforward to resolve. The key is acting quickly rather than letting it sit. What worked for me was gathering ALL my tax documents (W-2s, 1099s, bank statements, etc.) and doing a line-by-line comparison with what the IRS claimed I didn't report. In my case, they were right - I had completely forgotten about a small 1099-MISC from some freelance work I did early in the year. If you determine the IRS is correct (like I did), paying online through IRS Direct Pay is the fastest way to stop interest from accumulating. The process was actually pretty simple once I stopped panicking about it. But if you think there's an error, definitely dispute it. The notice should have instructions on how to respond. Just make sure you do it within the timeframe they specify (usually 30 days from the notice date). Either way, don't let this snowball like some people do. Address it now while it's still manageable. You've got this!