CP321J, CP321K and CP321L: The IRS Writes About a Saver’s Match, a Theft Loss or a New SSN Rule

What these three notices are

Most CP321 notices ask you to recheck a claim on a return you filed. Our CP321 series page covers those six. The IRS pages for CP321J, CP321K and CP321L do something else.

CP321J tells you about a federal match that starts in 2027. CP321K tells you that you may be able to claim a theft loss. CP321L warns you about a rule that starts with tax year 2026. They have no subject in common, so read only the part for your letter.

CP321J: the Saver’s Match

The IRS CP321J page says the notice “informs taxpayers about their potential eligibility for the Saver’s Match,” a federal matching contribution of up to 50% of what you put in a retirement account. You could get up to $1,000 each year added to your account.

The IRS sent it to people who claimed the Saver’s Credit on a 2025 return, or whose 2025 income fell in the match’s range. Starting in 2027, the match replaces that credit for contributions to retirement plans and IRAs.

You don’t need to act now. The IRS Saver’s Match page says, “You don’t need to do anything in 2026.” In 2027, start or keep making contributions and keep records. If you have no plan or IRA, the CP321J page points to TrumpIRA.gov. You claim the match in 2028 by filing Form 8880-A with your 2027 return.

The basics to qualify include being 18 by the end of the tax year, not being a dependent on someone else’s return, and not being a student as that page defines it. Income limits apply, and the IRS page lists them by filing status.

CP321K: a TreasuryDirect theft loss

The IRS CP321K page says the notice is “to inform potentially impacted taxpayers they may be able to claim theft loss.” It applies if someone stole money from your TreasuryDirect account.

The timing rule matters most. The page says you can claim the loss “once you’ve recovered as much as you can.” It also says TreasuryDirect has told the IRS it recovered all it can. So you may claim the loss for the year you got a partial recovery, or the year TreasuryDirect told you it could recover nothing.

If that year was 2025, claim it on your 2025 return. If you already filed, the page says you may file an amended return. If that year was 2026, claim it on your 2026 return.

Either way, the page says to report the interest income from the TreasuryDirect Form 1099-INT on your 2025 return. The loss goes on Form 4684, and the CP321K page lists the line entries, so work from that page. That page sends the final loss to Schedule A, Itemized Deductions, so check whether you itemize before you plan on it. The page also suggests an identity protection PIN.

CP321L: education credits and a valid SSN

The IRS CP321L page says people who “previously claimed” the American Opportunity Tax Credit or the Lifetime Learning Credit using an individual taxpayer identification number (ITIN) “must now have a valid Social Security number (SSN) to qualify for these credits.”

The rule starts with tax year 2026. You or your spouse, and the student if that student is your dependent, must meet it. On a joint return, only one spouse needs a valid SSN. The page says a valid SSN is one that is valid for work and that the Social Security Administration issued before the due date of your 2026 return, including extensions.

Your past returns stay as they are. The page says the rule “only affects the current year and future year returns.”

If you do not meet the rule, plan ahead. The page says to use the Tax Withholding Estimator, then update Form W-4 or make an estimated tax payment. It warns that if you skip this, you could have a balance due when you file. Our education credit calculator helps you see what the credit is worth.

What people mistake the CP321J, K and L notices for

Many people read any CP321 as a sign of a mistake on their return. These three IRS pages do not say that. A CP321J tells you about a new match, a CP321K tells you about a possible loss claim, and a CP321L tells you about a coming rule.

Some people take the CP321J as money on the way. It says you may qualify. Nothing arrives unless you contribute in 2027 and claim the match with your 2027 return.

Some CP321K readers think they must wait for the 2026 filing season to report anything. The interest belongs on the 2025 return even if the loss belongs on the 2026 return, so those two steps can land in different years.

Some CP321L readers think they must amend old returns. The IRS page says the rule does not touch prior years. If your notice says something else, our guide to IRS letters helps you find it.

Common Questions