You are entitled to the exemption if your child qualifies as your dependent. To correct the return, you must provide the correct social security number information for your daughter. You can return it with a copy of the IRS letter in the envelope provided or contact the phone number listed in the upper right-hand corner of the letter for assistance.

The IRS sends a letter or notice to you to request payment for taxes, notify you of a change to your account, or request additional information. Please review the information on your entire tax return and compare it with the information on the notice. If the notice tells you that a correction was made to your account and you agree with the correction, a reply is not needed unless a payment is due. If you do not agree with the correction we made, it is important that you respond to the letter or notice as requested. Please call or write to us and tell us why you disagree so any necessary action can be taken. If you are due a refund as a result of our adjustment, it will be sent to you unless you owe other amounts the law requires us to collect (for example, related tax accounts, child support, student loans, etc.). Notices and refund checks are sent from different IRS locations. Any refund issued as a result of our change or correction, should be received within 6 weeks from the date of the notice. Refer to Tax Topic 651, Notices - What to do, for additional information.

References:

• Tax Topic 651, Notices - what to do

You can call the National Taxpayer Advocate line. Since October 1998 there has been a national toll-free Taxpayer Advocate Program (formerly Problem Resolution Office), available 8:00 am until 8:00 pm Monday through Friday. You may reach the hotline by calling (877) 777-4778.

References:

• Tax Topic 104, Taxpayer Advocate Service - help for problem situations

No. CP 2000 is a proposal based on comparing your return with information reported to the IRS by employers, banks, businesses and other payers. You may agree, disagree, or partially agree with the proposal. Refer to Tax Topic 652, Notice of Underreported Income - CP 2000, for additional information.

References:

• Tax Topic 652, Notice of under-reported income - CP 2000

If you believe the IRS made a mistake with the figures, or didn't consider some important information, call the IRS at the number listed on the notice to discuss the matter. If possible, please have a copy of your tax return and the notice when you call.

Interest is charged on any unpaid tax from the due date of the return until the date of payment. The interest rate is determined every three months and is the federal short-term rate plus 3 percent. Interest is compounded daily. If you paid the net amount of tax that was due based on the tax shown on the return, and later determine that more tax should have been shown on the return, you will incur a failure to pay penalty. Additionally, when the IRS bills you for any tax, penalty, or interest, if you do not pay the bill within 21 calendar days (10 business days if the amount equals or exceeds $100,000), then a late payment penalty will be assessed from the date of the bill unless you have reasonable cause for the failure. The amount of the penalty is one-half of one percent of the tax owed for each month, or part of a month, that the tax remains unpaid, up to 25 percent.

If you file on time but don't pay the net amount due based on the tax shown on the return, you will generally have to pay a late payment penalty of one-half of one percent of the tax owed for each month, or part of a month, that the tax remains unpaid after the due date, up to 25 percent. However, you will not have to pay the penalty if you can show reasonable cause for the failure.

References:

• Publication 17, Your Federal Income Tax
• Publication 594 (PDF), What you Should Know About The IRS Collection Process
• Tax Topic 653, IRS notice and bills, penalties and interest charges
• The Newsroom

If you believe the IRS made a mistake in the figures, call the phone number listed on the notice to discuss the matter before filing an amended return. If possible, please have a copy of your tax return, and the notice when you call.

If your account has not been credited with all of your deposits, call the toll-free number on your notice to discuss the matter. Please have the notice and a list of your deposits when you call.

Allow at least six weeks from the date of the notice, for your refund to be mailed to you. We could not include the check with your notice, because checks are processed in a different location and mailed by a different system. If it has already been longer than six weeks, please call us at the toll-free number listed on your notice. If possible, please have a copy of the IRS notice and a copy of your tax return when you call.