CP 23 - Estimated Tax Payment Discrepancy, Balance Due

The IRS notice "CP 23" informs the taxpayer that the estimated tax payments received by the IRS and posted to their account does not match the tax payments claimed on the return, leaving a balance due. There may also be information included for any changes made to the return.

The notice shows the credits the IRS has received for the taxpayer's account and explains the changes to the tax return if applicable.

If you agree with the adjustment, make the changes to your tax return records to reflect the IRS adjustment. If you do not agree with the changes, call or write to the IRS at the phone number or address given in the header section of the notice. When contacting the IRS with differences, make certain to have your payment information, canceled checks, and tax returns available to assist in documenting the differences.

If you receive a CP23 Notice from the IRS, you should review the notice very carefully. Pull out your tax return and supporting documentation and look for any changes made by the IRS to your return or calculations. If you agree with the changes, you can pay the IRS with the enclosed coupon or online. If you agree with the changes, but you can't pay the entire balance due right away, you can contact the IRS and see if you can set up a payment plan. However, you may also owe interest and penalties if you can't pay the entire balance by the date indicated in the CP23 Notice.

If you don't agree with the CP23 Notice, or if you aren't sure, you need to contact an experienced tax attorney right away. A tax attorney can help you determine the best course of action and whether you need to file an amended return or provide the IRS with more documentation. Whatever you decide, you and your attorney must notify the IRS of your disagreement within 60 days from the date on your CP23 Notice.

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