What is this CHECK for?

[lollipopweeps80]

I received this letter along with a check for the above amount today, from what I have researched CP21E means I owe taxes, but if that is the case how do we explain this letter and a check for that amount?

I also been researching a little, and, because of covid, I was on unemployment in 2020, but had a job and got taxes back (Including Child Tax Credits) in 2019, there was a rule called the "Lookback Rule" which they would automatically apply all the credits I received the prior year (2019) for my 2020 return, is that what I'm looking at here?

Thanks

[ErnieS0 · Accepted solution]

Yes, a CP21E notice generally means you owe tax though you can have a refund with this notice.

No one in the Community can tell why the IRS adjusted your return from this notice because all it says is that the IRS increased your credit by $5,164.00. As the notice says, “Please see a copy of the audit report for a detailed explanation of the changes.”

You may have credit a larger child tax credit or Earned Income Tax Credit.

Call the IRS at the number listed.

[lollipopweeps80]

Where would I find the audit report?

Thanks

[KrisD15]

The letter says the copy of the audit is included with the letter. Your letter says "Page 1 of 2" so did you look at the front and back of both pages? 

If you don't have the audit or reason for the adjustment, call the phone number the IRS gave you.