The Adjusted Tax Computation Notice is the most complicated of all the notices I get questions about – so I’m going to start here and get the difficult stuff over with. Each Adjustment is different but only a few require action. I talk about that in more detail below, but first, how do you know what notice you have?? You can tell this notice from the others because it should expressly say, “Statement of Adjustment to Your Account,” on page 1. This IRS Form 2290 Notice is 4 pages and looks a little something like this:
General things you should know about Form 2290 Notices
First – Adjustment doesn’t mean what I thought it meant when I first saw this notice. To the IRS Adjustment means that you filed a second (or third or fourth….) tax form, and they had update your file accordingly. That update, is an adjustment. It doesn’t necessarily mean that the IRS changed something about the 2290 Tax Form you filed, or that they adjusted the taxes due for some unknown reason.
Second – Make no assumptions. You should probably call the IRS and let them explain. Only the IRS can tell you exactly what they mean by “adjustment” and only the IRS can tell you if your account is in good standing or bad.
Third – This notice doesn’t always require action. Sometimes the IRS is just telling you that you filed another tax form, and so your tax liability changed, and you already paid the money you owe. It’s a class example of bureaucratic excess because – DUHH!! – you did the filing, you know you owed more money, that’s why you paid it already!! Take everything the IRS sends you with a grain of salt, but don’t ignore any of it.
A Notice Breakdown in Pictures
Read the notice carefully – it will tell you exactly what you need to do.
In this example, they are very specifically asking you to pay the taxes due, and giving you the payment methods they accept. Your options include EFTPS and Check or Money order. They will also give you a payment due date – pay special attention and be sure to at the very least to call the IRS before this date. You can always ask the IRS to freeze the account and give you more time to make your response.
Page 2 says what you need to do if you believe the notice is wrong.
But the number entered on this example notice, is NOT the BEST number to call. You should call the IRS 2290 Hotline because they are best able to understand and answer questions about Form 2290.
Toll Free Number – 866-699-4096
International Phone Number – 859-669-5733
The rest of pages 2 and 3 talks about how the IRS calculates penalties and interest. It’s a form letter and difficult to understand. Read it if you like, or skip to the end.
Page 4 is a payment and correspondence voucher.
Your notice will contain your company information and address, and you can send it to the IRS with either your check for taxes due if you agree with the notice, or as a request that they call you to discuss the notice.
And that’s about it!! The whole notice in a nutshell! It’s not that bad once you break it down!
In My Experience
In my experience, these notices are usually mistakes, or just a confirmation of something you already know.
The Disclaimer
I’m not a CPA, enrolled agent, or attorney. That means I can’t, and don’t interpret the law. I’m just a regular person who happens takes care of a lot of this kind of thing for lots of different people. While I have experience, I don’t have lots of fancy education, training or certifications. So in this series of articles (as in all of my articles) I’m just sharing my experience with you. Telling you how I’ve resolved things in the past, or what I’ve been told by the IRS when I call with my own questions. No guarantees that my advice is perfect or that it works every time! It’s just what works for me…
2290Tax.com is one of a handful of preferred providers to e-file IRS Form 2290. Please feel free to contact us with any questions.
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