Overview

A CP22A is a common IRS notice titled “Notice of Supplemental Income and Changes to Refund.” It tells you the IRS has added income — usually from information returns like 1099 forms — to your tax return and recalculated your refund or balance due. The notice includes a line-by-line summary of the change, the reason, and next steps the IRS expects.

Receiving a CP22A does not automatically mean you did anything wrong. In many cases the IRS is simply reporting additional information received through information-return matching. That said, it can affect your refund and may trigger extra tax, interest, or penalties if not addressed promptly.

(IRS guidance: Understanding Your IRS Notice: https://www.irs.gov/individuals/understanding-your-irs-notice)

Why the IRS Sends a CP22A

The IRS receives millions of information returns every year — W-2s, 1099s, 1099-NEC, 1099-K, 1099-R, etc. It uses automated systems to match those forms to the income reported on filed returns. When something doesn’t match — for example, you didn’t report a 1099-NEC payment or the figures differ — the IRS often issues a CP22A (or a similar notice) to explain the supplemental income and its effect on your refund.

Common triggers:

  • Unreported freelance, gig, or contract income (1099-NEC).
  • Third-party network or payment reporting (1099-K).
  • Retirement or distribution income reported on 1099-R.
  • Employer or payer corrections filed after you submitted your return.

For background on the information forms that most often cause CP22A notices, see our guides on The Anatomy of a Form 1099 and How the IRS Uses Information Returns (1099s, W-2s) to Cross-Check Tax Returns.

Step-by-step: How to Handle a CP22A (Practical Checklist)

Follow these steps in the order below. In my practice advising taxpayers for over 15 years, acting methodically reduces stress and often limits what you owe.

  1. Read the notice carefully
  • Note the tax year, the exact adjustment(s), and the IRS contact information and deadlines printed on the notice.
  • The notice will show the income amount the IRS matched and the revised refund or balance.
  1. Compare the IRS numbers to your records
  • Pull the tax return for the year in question and the related information returns (1099-NEC, 1099-K, 1099-R, etc.).
  • If you did not receive the 1099 the IRS used, check bank statements and payment-platform records to find the source and amount.
  1. Get your IRS account transcript or wage and income transcript
  • Use the IRS Get Transcript tool or your IRS online account to view the wage and income transcript for the year in question. This shows what forms the IRS received and from whom. (Get Transcript: https://www.irs.gov/individuals/get-mytax-record)
  1. Decide if you agree or disagree
  • If the IRS is correct: follow the notice instructions to pay the additional tax, or agree and pay in full or arrange a payment plan. The CP22A will tell you if the IRS applied an offset to your refund or sent a bill.
  • If you disagree: gather documentation (1099s, bank records, invoices, receipts for allowable expenses) and follow the notice’s instructions to respond. In many cases, you’ll reply by mail with copies of documents and a clear explanation.
  1. File an amended return only when appropriate
  • If you discover you omitted deductible expenses or misreported income, you may file Form 1040-X (Amended U.S. Individual Income Tax Return) to correct your original return. But do not file 1040-X to dispute the IRS’s matching — first respond to the CP22A with supporting documents. (See IRS Publication 17 for filing guidance: https://www.irs.gov/pub/irs-pdf/p17.pdf)
  1. Track deadlines and responses
  • The CP22A will show a response window. Deadlines vary by notice; check the notice itself. If you need more time to gather records, call the IRS number on the notice to ask for guidance.
  1. Consider professional help
  • If the dollar amounts are large, the issue is complex, or you suspect identity theft or fraud, consult a CPA, enrolled agent, or tax attorney. In my experience, professionals can often structure a clearer rebuttal and negotiate installment agreements or abatement when appropriate.

If You Disagree: How to Build a Strong Response

  • Be concise and organized: include a cover letter that identifies the CP22A notice number, tax year, and your taxpayer information (name, SSN/ITIN, daytime phone).
  • Attach copies, not originals, of 1099s, bank records, invoices, and receipts that support your position.
  • Explain any legitimate reason the income was excluded (for example, a payer issued a corrected 1099 after you filed). If the payer agrees there was an error, request a corrected 1099 and include that correspondence.
  • Mail your response to the address provided on the notice using certified mail or another trackable service. Keep copies.

If the IRS formally disagrees after your submission, the notice will explain further appeal rights or refer you to the IRS Independent Office of Appeals. The appeals process is an administrative review separate from collection activity.

Possible Financial Consequences

  • Additional tax owed (reduced refund or balance due).
  • Interest from the original due date until payment is made.
  • Possible penalties for underreporting or late payment if the adjustment is correct and payment is not arranged.

If you cannot pay immediately, you can request an installment agreement or submit an Offer in Compromise in limited scenarios. Contacting the IRS early often reduces interest and collection action.

Special Concerns: Identity Theft and Incorrect Third-Party Reporting

Sometimes CP22A notices reveal income you never received — a red flag for identity theft or reporting errors. If you suspect identity theft: contact the IRS Identity Protection Specialized Unit and consult IRS guidance on tax-related identity theft. Keep an eye on your IRS account transcript to confirm what information returns were filed in your name.

Real-World Examples (Illustrative)

  • Freelancer: A client received a CP22A after a platform issued a 1099-NEC late. We confirmed the income, documented business expenses, and filed a corrected Schedule C. The final tax increase was smaller than the IRS’s initial adjustment.
  • Rental host: A taxpayer hosting short-term rentals overlooked a 1099-K. After pulling records and reconciling gross receipts, we amended their return to claim valid rental expenses and avoided penalties.

Common Mistakes to Avoid

  • Ignoring the notice — even informational notices can lead to additional bills and interest.
  • Sending original documents — always send copies and keep originals.
  • Filing an amended return without first confirming the IRS’s source documents — this can complicate the discussion.

Preventing Future CP22A Notices

  • Keep detailed income records, especially for gig work and side gigs.
  • Reconcile payment-platform statements with tax returns before filing.
  • Request corrected 1099s from payers promptly when you spot errors.
  • Use tax software or a tax professional to capture all income and related deductions.

For a deeper look at reporting gig and contract income, see this guide: Guide to 1099 Forms: Reporting Gig and Contract Income (https://finhelp.io/glossary/guide-to-1099-forms-reporting-gig-and-contract-income/).

Resources

Final Takeaway

A CP22A is usually an informational notice based on third-party reporting — not an accusation. Treat it as a prompt to verify records, respond with organized documentation if you disagree, or pay or arrange payment if the adjustment is accurate. Acting promptly preserves your rights and limits additional charges.

Professional disclaimer: This article is educational and does not replace personalized tax advice. For specific guidance, consult a CPA, enrolled agent, or tax attorney.

Authorship note: Content adapted and reviewed for accuracy by a senior financial editor with experience advising clients on IRS notices and information-return disputes (2025).