Inaccurate IRS Letter Received - Need Help with CP321D Notice!

So I'm totally stressed out right now. My son just got this letter from the IRS yesterday - it's one of those CP321D notices. The letter basically claims he owes money from his 2023 taxes, but I'm pretty sure this is completely wrong! He's only 19 and worked part-time at a restaurant while going to college. His income was barely $14,500 for the year, and he had the right amount of taxes withheld according to his W-2. We double-checked all his paperwork from when we filed in April, and everything matches up with what his employer reported. I think the IRS might have mixed him up with someone else or there's some kind of system error. Has anyone dealt with these CP321D notices before? The letter is saying he owes around $2,800 which is ridiculous for his income level. The deadline to respond is in 30 days and I'm not sure what's the best way to handle this. Should we call the IRS directly? Send a written response? Get a tax professional involved? Any advice would be super helpful because we're both kinda freaking out about this.

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18 comments

Omar Farouk

•8M

This sounds like a classic case of mismatched information between what was reported on the tax return and what the IRS has in their systems. CP321D notices are sent when the IRS believes there's unreported income or incorrect deductions claimed. First, don't panic - these notices are often sent in error and can be resolved. Before calling the IRS, gather all your son's income documents for 2023 - W-2s, 1099s if any, and a copy of his tax return. Compare the amounts reported to make sure everything was included correctly. Next, write a response letter explaining why you believe the notice is incorrect. Include copies (never originals) of supporting documents that prove his actual income and withholding amounts. Be very specific about which items on the notice you're disputing.

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Omar Farouk

•8M

Right now, response times from the IRS vary quite a bit depending on the complexity of your case and their current workload. Typically, you should expect to wait 30-60 days for an initial response. If your documentation clearly shows the error, resolution could be fairly quick. However, more complex situations might take several months to fully resolve. The important thing is to respond before the deadline listed on the notice to avoid any additional penalties or collection actions.

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AstroAlpha

•8M

I went through something almost identical with a CP321D notice last year! After spending WEEKS trying to reach someone at the IRS and getting nowhere, I found this amazing service called taxr.ai (https://taxr.ai) that helped me resolve the whole situation. You just upload your IRS notice and tax documents, and their AI analyzes everything to help identify exactly where the discrepancy is. In my case, it turned out my employer had reported different numbers to the IRS than what was on my W-2. The taxr.ai system flagged this immediately and gave me a clear explanation I could understand. They even helped draft a response letter with all the right technical language that I wouldn't have known to use.

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Diego Chavez

•8M

Just wanted to update everyone - I tried the taxr.ai service that was mentioned after struggling with my CP2000 notice for weeks. Seriously impressed with how easy they made everything! The analysis pinpointed exactly where the discrepancy was (turns out I had forgotten to report some dividend income from an old account). What really helped was that they explained everything in plain English instead of confusing tax jargon. The response letter they helped create was super professional, and I just got confirmation from the IRS that they've adjusted the amount I owe based on my explanation. Saved me at least $1,200 in incorrect tax charges! Wish I'd known about this sooner.

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Sean O'Brien

•8M

For anyone dealing with these IRS notices - trying to actually TALK to someone at the IRS is nearly impossible these days. I spent literally 4+ hours on hold last month trying to resolve a similar issue. After multiple failed attempts, I discovered Claimyr (https://claimyr.com) and honestly, it changed everything. Their service basically holds your place in the IRS phone queue and calls you when an actual agent is on the line. I was super skeptical it would work, but you can see a demo at https://youtu.be/_kiP6q8DX5c that shows exactly how it works. Instead of wasting an entire day on hold, I was able to actually get through to a real IRS agent who cleared up my CP321D notice misunderstanding in about 10 minutes once I explained the situation.

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Sean O'Brien

•8M

They don't have any special connection - they use automated technology to navigate the IRS phone menus and wait on hold so you don't have to. It's basically like having someone wait in a physical line for you, except it's for phone calls. When a human IRS agent finally answers, their system immediately connects that agent to your phone. Totally get the skepticism - I felt the same way! But when you're desperate after spending hours on hold multiple times, you'll try anything. The system actually works exactly as advertised. I went from waiting 4+ hours to getting a callback when an actual agent was on the line. The IRS doesn't even know you used a service - they just think you waited on hold the whole time.

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Anastasia Smirnova

•8M

Wow I need to publicly eat my words here. After being completely skeptical about Claimyr, I was still desperate enough to try it for my situation. I had been trying to reach the IRS for LITERALLY 3 months about an incorrect CP321D. It actually worked exactly like they said. Their system handled all the awful phone menus and waiting, then my phone rang when an actual human at the IRS was on the line. Spoke with an agent named Marcus who fixed my issue in about 15 minutes once I explained the situation. Would have taken me another 2-3 hours of hold time otherwise. I'm still shocked it worked so well. Sorry for being so negative before - just been burned by too many "solutions" that don't deliver.

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Luca Bianchi

•8M

You can usually tell if there's potential identity theft if the notice mentions income sources your son didn't actually have. For example, if the notice shows income from employers he never worked for or investment income from accounts he doesn't own. In our case, we had to file Form 14039 (Identity Theft Affidavit) with the IRS and provide documentation proving my daughter's legitimate income. We also placed a fraud alert on her credit reports and froze her credit as a precaution. The IRS has a special department for tax-related identity theft cases, and they eventually cleared everything up - though it did take about 4 months to fully resolve.

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