IRS Notice CP22E is the “Notice of Examination Adjustments” the IRS sends when an IRS audit (or an IRS-prepared substitute return) results in a new balance due for a year that previously did not have one.

That distinction matters. If the year already had a balance before the audit, the IRS more commonly uses a different notice (often CP21E). CP22E is essentially the IRS telling you: “Examination is finished, we assessed additional tax, and you now owe.”

This guide explains CP22E in plain English, what each part of the notice is saying, and what smart next steps look like—whether you agree, disagree, or can’t afford to pay in full.

IRS Notice CP22E At a Glance

Why the IRS Sends Notice CP22E

The IRS sends CP22E when Examination has completed an action that increases what you owe—most commonly:

1) Audit of a return you filed

You filed a return, the IRS audited it (often through correspondence), and the audit resulted in additional tax, penalties, and interest. Once the IRS posts the change, CP22E summarizes what you owe and when it’s due.

2) An IRS-prepared Substitute for Return (SFR)

If you didn’t file a required return, Examination may create an SFR using income information it has (such as W-2s and 1099s). Because SFRs often miss deductions and credits you could have claimed, the resulting assessment can be higher than what you would owe on a properly filed return.

In both scenarios, CP22E is the IRS moving from “review” to “payment expectation.”

IRS Notice CP22E Explained, Part by Part

Part 1: Billing summary on IRS Notice CP22E

The first page usually contains the core summary of what the IRS believes you owe, often including:

• Tax assessed (the base tax the IRS says you owe after the audit/SFR)
• Payments/credits (if any are on the account for that year)
• Penalties (common when the IRS says the return was late or the tax was underpaid)
• Interest (charged on unpaid amounts over time)
• Total amount due and a due date (often a short payment window)

If you had no payments or credits for the year, that section may be blank—especially common in SFR cases.

What to check: Make sure the tax year is correct and that any payments/withholding you made for that year are actually reflected.

Part 2: Payment coupon

Near the bottom of the first page, CP22E often includes a payment stub for mailing a check or money order. It’s mainly there to ensure the payment posts to:

• the correct taxpayer, and
• the correct tax year.

Even if you pay online, it’s useful to keep this page for your records.

Part 3: What the IRS wants you to do regarding IRS Notice CP22E

This section is the IRS being direct: it wants you to pay the amount due by the stated deadline or take action to address the balance.

If you disagree with the amount, CP22E is still a signal that you should act quickly—either to challenge the assessment appropriately or to prevent avoidable collections issues.

Part 4: Payment options

CP22E typically mentions payment methods and may reference resolution options for people who can’t pay in full, such as:

• installment agreements,
• Offer in Compromise (only if you qualify), and
• temporary hardship relief (often associated with currently not collectible status when appropriate).

These options usually work best when you’re current on filing and can provide financial information when required.

Part 5: Penalties

CP22E often includes a section explaining penalties assessed on your account. Common penalty categories you may see include:

Failure-to-file penalty

Often appears in SFR situations where the IRS assessed tax because no return was filed. This penalty is generally tied to how long the return remained unfiled and the amount of tax assessed.

Estimated tax underpayment penalty

The IRS expects tax to be paid throughout the year (with withholding or estimated payments). Even if you pay later, the IRS may still charge a penalty if quarterly payments were insufficient.

Failure-to-pay penalty

If the IRS says a balance existed and wasn’t paid by the due date, this penalty can apply and can continue until the balance is paid or otherwise resolved.

What to remember: Penalties are often calculated based on the tax assessed. If the underlying tax is wrong (for example, an SFR overstated your income or missed deductions), the penalty amounts may also be wrong.

Part 6: Penalty removal or reduction

CP22E often includes a brief note that penalties may be reduced or removed in certain situations. This is where penalty relief may be on the table—depending on your history and the facts.

Penalty relief is not guaranteed, but it can be meaningful, especially when penalties are a large portion of the balance.

Part 7: Interest charges calculation

This part typically breaks interest down by periods. Interest can feel confusing because it changes over time and is based on the timing of assessments and payments.

If the interest seems high, it’s usually a sign the balance has been “sitting” for a while—or that the assessment date goes back further than you realized (which can happen in audit/SFR cases).

Part 8: Additional information

The final section typically includes:

• an IRS page reference for the notice,
• where to find forms and publications,
• how to contact the IRS, and
• reminders to keep the notice for your records.

Keep CP22E with your tax file for that year. It’s often helpful for future transcript review and resolution planning.

When the IRS Sends CP22E

The IRS generally issues CP22E after Examination has:

• finalized audit findings (or an SFR assessment),
• posted the results to your account, and
• created a new balance due where none existed previously.

After CP22E, if the balance isn’t addressed, the account may transition into normal collections workflows—letters, payment plan requests, and potential enforcement steps depending on the size and age of the debt.

What You Should Do If You Receive IRS Notice CP22E

Step 1: Decide whether you agree with the audit result on IRS Notice CP22E

Start by asking: “Is this correct?”

CP22E usually follows an audit, so you may already have prior correspondence—exam letters, reports, or notices—explaining what the IRS changed. Compare CP22E to:

• your return and supporting documents,
• the audit report or correspondence (if you have it),
• and the categories the IRS adjusted.

If CP22E is tied to an SFR, assume it may be missing key items until proven otherwise.

Step 2: Consider audit reconsideration if the assessment is wrong

If you disagree with the results and you have documents that support your position, audit reconsideration may be an option.

Audit reconsideration is often relevant when:

• you didn’t respond during the audit,
• you have new documentation the IRS didn’t consider,
• or the IRS used incomplete information (common in SFR cases).

The goal is to get the IRS to re-review the year and correct the assessment if the facts support it.

Step 3: Look for penalty relief opportunities

If the tax itself is correct (or after it becomes correct), it may still be worth evaluating whether penalties can be reduced.

Penalty relief can sometimes reduce the total balance meaningfully, and it can also lower future interest because interest is tied to the outstanding balance.

Step 4: Choose a resolution plan for the balance due

If you agree you owe (or once the amount is corrected), you generally have three broad paths:

• Pay in full if possible (fastest way to stop additional interest)
• Set up a payment plan if you need time
• Explore hardship or settlement options if full payment isn’t realistic (eligibility depends on your financial situation)

This is where a CPA-led strategy matters: the “best” option is the one you can actually maintain without falling behind again.

Why Work With a CPA Firm, Not Just a Tax Relief Company

CP22E cases often involve audit mechanics, transcript analysis, penalties, and sometimes unfiled returns or SFRs. A CPA firm can help you:

• confirm what the IRS assessed and why,
• evaluate audit reconsideration with proper documentation,
• file any missing returns correctly (especially if an SFR is driving the debt),
• reduce penalties when the facts support it, and
• build a long-term compliance plan so the account stays stable.

That’s a different approach than a sales-first “tax relief” model.

How Corridor Consulting CPAs Can Help With IRS Notice CP22E

Corridor Consulting CPAs helps taxpayers in Cedar Rapids, Eastern Iowa, and nationwide respond to CP22E by:

• reviewing your CP22E and account transcripts to identify exactly what was assessed,
• determining whether audit reconsideration is appropriate and preparing the supporting package,
• replacing an SFR with a correctly prepared return when possible,
• pursuing penalty relief when warranted, and
• setting up a workable resolution plan (payment plan, hardship pathway, or settlement evaluation based on eligibility).

We focus on calm clarity, clean documentation, and an approach you can live with.

Take the First Step Toward IRS Tax Relief

CP22E doesn’t mean you’re out of options—it means the IRS has finished an audit action and is now treating the amount as collectible. Your next step is to confirm whether the assessment is accurate and then choose the right path: reconsideration, penalty relief, or a resolution plan.

If you want help making sense of CP22E and protecting your financial stability, Corridor Consulting CPAs is here with professional tax relief help—starting in Cedar Rapids and serving clients nationwide.

Resources: Learn More About IRS Notices and Your Rights (IRS-only)

• Understanding Your CP22E Notice (example notice)
• Publication 1 — Your Rights as a Taxpayer
• Taxpayer Bill of Rights
• Publication 594 — The IRS Collection Process
• Audit Reconsideration (IRS guidance)
• Offer in Compromise — Basics
• Installment Agreements — Payment Plans
• Penalty Relief — Administrative Relief Options
• Get Transcript — Account Transcript