Hey guys, I've been searching all day for an answer which I was unable to find thus leading me here, I got a notice in the mail today, I had no clue of what it could be, I opened the letter to find a check along with a notice (CP21E) it says *As a result of your recent audit, we changed your 2020 form 1040, as a result, you are due a refund of *REFUND AMOUNT*. * *Changes to your 2020 form 1040* Refund Due: *REFUND AMOUNT*, and under summary it has "Increase in credit". I was on unemployment in 2020 which I filed a return and got my refund for 2020, I assume this has to do with the *Lookback* option? I was employed in 2019 and I received CTC for that year, so I'm I correct in assuming that?
Are you sure that this was not a CP21B? So far as I can see, an IRS CP21E is only for a balance due.
So I am concerned about a scam. It's a pretty obscure scam, but there are scams where someone sends you a check to have you cash it, then later asks you to send the money back, and after you do, they cancel the original check, so you are stuck owing the money that you never asked for.
Do you live in a location where there is a local IRS office ("Taxpayer Assistance Center") or a branch of the Taxpayer Advocate Service?
If I am right (and I hope I am not), the IRS will want to hear about this. Or, of course, if you got a CP21B, then that could be for a refund.
Here's more info on IRS Letter CP21E. As @BillM223 said above, it is a notice about Tax Due.
To report a suspicious IRS Letter, call 800-829-1040.
Here's more info.