If the i.r. s. Sent me a letter stating an error was found,should I refile an amended return?

[VATAXFILER]

I got a letter with notice name CP12 dated march 7. I.r.s. drastically reduced MY federal refund amount. Trying to refile. How do I correct the error and refile?

[VolvoGirl]

Depends what the error is.  You usually do not need to amend since the IRS already adjusted your return.

The 2 most common reasons this year is you entered the wrong amount on line 30 for the Recovery Rebate Credit (3rd Stimulus payment) or line 28 for the Child Tax Credit.  Those lines are just if you didn't already get the full amount or qualify for more.  The IRS knows what they already sent you.  

A lot of people answered the questions wrong and tried to claim the credits again.  Double check your bank statements to see what the IRS sent you during the year for the 3rd Stimulus payment and Advance Child Tax Credit .

[JillS56]

You cannot correct and refile your return.   When you received this letter from the IRS they normally make the adjustment and send you the adjusted amount.  You do not have to do anything with your return unless you disagree with what the IRS has adjusted.   If you disagree, the letter probably provides an area for you to respond and say you disagree and why you disagree.     If you disagree, you could file an Amended Return.    

The only reason you would amend your return at this point is if you disagree with the IRS and an amended return shows you a  different outcome,