U.S. · IRS notices
IRS CP107 notice explained.
A notice that the IRS changed your return after a miscalculation, with a changed balance due and Form 1042 references.
CP107 says the IRS made changes to your tax return because it found a miscalculation, and your balance due also changed. The IRS page says to contact the IRS within 60 days of the date of the notice if you disagree, and to pay the amount owed by the payment due date on the notice. Its FAQ discusses failure-to-deposit and failure-to-pay penalties, and the page links Instructions for Form 1042.
Compare IRS CP notices
Result
CP notices at a glance
| Notice | What the IRS page says it is | Response, as the IRS page states it |
|---|---|---|
| CP2000 | The income or payment information the IRS received from third parties, such as employers or financial institutions, does not match what was reported on the tax return. | Reply to the notice by the date listed on it. The IRS says the notice is not a bill and a response may be required. |
| CP13 | The IRS corrected one or more mistakes on the return. The taxpayer is not due a refund and does not owe an additional amount because of the changes; the account balance is zero. | No response if you agree. If you disagree, contact the IRS at the number on the notice by the date indicated. |
| CP16 | The IRS corrected one or more mistakes on the return. Because the taxpayer or spouse owe other tax debts, the IRS applied all or part of the refund to pay off those debts. | No response if you agree. If you disagree, contact the IRS at the number on the notice by the date indicated. |
| CP103 | The IRS made changes to the return because it found a miscalculation, and the balance due changed as a result. | Contact the IRS within 60 days of the date of the notice if you disagree. Pay by the date on the payment coupon. |
| CP107 | The IRS made changes to the return because it found a miscalculation, and the balance due changed as a result. | Contact the IRS within 60 days of the date of the notice if you disagree. Pay by the payment due date on the notice. |
| CP108 | The IRS received a payment but could not determine the correct form or tax year to apply it to. | No response if the payment was applied correctly. If not, tell the IRS where to apply it, by phone or Form 15108. |
| CP133 | The IRS made changes to the return because it believes there is a miscalculation, and as a result there is an overpayment on the account. | Contact the IRS within 10 days of the date of the notice if you disagree, by phone or by mailing the completed contact stub. |
| CP136 | The employer’s deposit requirement for Form 941 filings next year may differ from last year’s, based on the total tax reported on the Forms 941 for the four previous consecutive quarterly periods (the lookback period). | The IRS page prints no response date. It says to check your records against the notice and, if a Form 941 is missing, to file it as soon as possible. |
| CP152 (IRS page) | The IRS received the tax-exempt bond form. | No action needed; keep the notice for your records. |
| CP153 | The IRS cannot provide the refund through direct deposit and is sending the refund or credit payment by mail. | No response is requested. Expect the refund within 3-4 weeks of the notice date; contact the IRS if it has not arrived after 4 weeks. |
| CP2005 | The IRS accepted the information sent, will not change the return, and has closed its review. | No response is required. |
The notice number is printed on the notice itself, usually in the top right corner. Use the number exactly as printed; the table follows the IRS page for each number.
What the IRS says the notice is
“We made changes to your tax return because we found a miscalculation. As a result of these changes, your balance due also changed.”
What the IRS page asks you to do
Read the notice and compare its figures with your tax return. Contact the IRS within 60 days of the date of the notice if you disagree, with your account information available when you call. If you agree, correct your copy of the return and keep the notice for your records. Pay the amount owed by the payment due date on the notice, and contact the IRS to make payment arrangements if you can’t pay in full.
Forms and publications on the page
Under “You may want to,” the IRS suggests downloading the Instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and lists Publication 515 (withholding of tax on nonresident aliens and foreign entities) and Publication 15 among useful publications. The page itself does not say more about which filers receive this notice, and neither does this one.
Interest
Per the FAQ, interest begins to accrue on the unpaid deposit amount from the day the deposit was due until the IRS receives the deposit in full. Interest begins to accrue on the penalty if the penalty amount is not paid within 10 days of the date of the notice.
Penalties
The FAQ says that when an employer fails to make a proper tax deposit, even through error, the IRS assesses a 10% failure-to-deposit penalty, and you may or may not have received notice of it before this one. If you think the penalty is an error or believe you had reasonable cause, you can ask the IRS to remove it, and the penalty notice explains your right to appeal. If you pay the unpaid tax by the payment due date on the notice, no additional penalties are assessed on the amount owed; if you don’t pay the total by that date, an additional 5% failure-to-pay penalty is assessed on top of the 10% failure-to-deposit penalty.
How this page differs from the others
CP103 carries the same 60-day wording with a different FAQ.
More IRS notice pages
Other pages in this set: CP2000, CP13, CP16, CP103, CP108, CP133, CP136, CP153, CP2005. For the codes on an IRS account transcript, see the IRS transcript codes lookup. For how interest and penalties are worked out on a balance, see the IRS penalty and interest calculator.
Sources
- Understanding your CP107 notice: what the notice is, 60 days, interest and penalty FAQ. Read November 2, 2026.
IRS page last reviewed April 29, 2026. This page restates what the IRS page says and adds nothing beyond it: no timelines, outcomes or advice that the IRS page does not state. The IRS can change a notice page at any time; the notice you received controls, including its response date and contact details.
Frequently asked questions
What does an IRS CP107 notice mean?
The IRS made changes to your tax return because it found a miscalculation, and your balance due changed as a result.
How long do I have to respond to a CP107?
The IRS page says to contact the IRS within 60 days of the date of the notice if you disagree with the changes.
Does interest accrue on a CP107 balance?
Yes. Interest begins on the unpaid deposit amount from the day the deposit was due until the IRS receives it in full, and on the penalty if it is not paid within 10 days of the notice date.
Will I get more than one failure-to-deposit penalty?
Maybe. The IRS page says a 10% failure-to-deposit penalty is assessed when an employer fails to make a proper deposit, and you may or may not have had notice of it before this notice.
What is the extra 5% penalty on a CP107?
The IRS page says a 5% failure-to-pay penalty is assessed on top of the 10% failure-to-deposit penalty if you don’t pay the total tax due by the notice due date.
Not tax or legal advice
This page summarizes IRS notice pages and is not tax, legal or financial advice. It does not tell you how to respond to a notice beyond what the IRS page states. The notice you received controls. A CPA, enrolled agent or tax attorney, or the IRS number printed on your notice, can confirm what applies to you. Everything runs in your browser; nothing you enter is sent anywhere.