IRS CP220
We Changed Your Corporation's Tax Return — Balance Due
The IRS made changes to your corporate return and is now billing your company.
Deadline
60 days to dispute; 21 days to pay if you agree
Corporate adjustments that are not disputed within 60 days become final assessments subject to full collection action against the entity.
Respond promptly to protect your options and avoid escalation.
What IRS CP220 Means
CP220 is sent to corporations (C-Corps and S-Corps) when the IRS makes changes to the corporate tax return and those changes result in an additional balance due. Unlike CP14 (which confirms a balance the company itself calculated), CP220 reflects an IRS adjustment.
Common causes include math errors in the return, disallowed deductions, changes to depreciation calculations, or adjustments resulting from related examinations of shareholders or other connected entities.
Corporate tax balances can have significant downstream effects — including adjustments to shareholder K-1s, basis calculations, and potential personal liability for officers if payroll taxes are involved.
What the IRS Can Do If You Don't Respond
- Assess the adjusted corporate balance after 60 days without dispute
- Levy corporate bank accounts and assets
- File a corporate tax lien
- Adjust related shareholder returns based on the corporate adjustment
What You Should Do Right Now
- 1
Review the IRS adjustment against the original corporate return carefully
- 2
If incorrect, dispute within 60 days with documentation
- 3
If correct, pay or establish a corporate installment agreement
- 4
Consult a CPA to evaluate downstream effects on shareholder returns
Resolution Options Available to You
Frequently Asked Questions About IRS CP220
Does CP220 affect my personal taxes?
It can. If you are a shareholder in an S-Corp and the IRS adjusts corporate income or deductions, your personal K-1 allocation may change, requiring an amended personal return and potentially creating a personal balance due.
Professional References
IRC: IRC §6213 — Deficiency; IRC §11 — Corporate Tax
IRM: IRM 4.10 — Corporate Examination Procedures
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