Understanding Your CP23T Notice

What this notice is about

You have a balance due because of a difference in estimated tax payments and other changes to your return.


What you need to do

  • Follow the instructions in your notice.
  • If you agree with the changes we made:
    • Pay online or mail your payment to the address on the notice.
    • Correct your copy of your tax return, but do not send it to us.
  • If you don't agree:
    • Write to us within 60 days from the date of your notice with justification and we’ll reverse the change to your account.
    • You can find helpful information in the answers to common questions below.

Answers to common questions

I don't pay estimated taxes. Why did I get this notice?

You may have entered information incorrectly on the estimated tax line of the tax return. If this happened, call the phone number on your notice.

I made estimated tax payments, so why are you charging me a failure-to-pay penalty?

You didn’t pay enough tax throughout the year, either through withholding or by making estimated tax payments. See our Estimated Taxes page, or Tax Topic 306 - Penalty for Underpayment of Estimated Tax.

How do I change my estimated tax payments?

Complete Form 1040-ES, Estimated Tax for Individuals (PDF). See Publication 505, Tax Withholding and Estimated Tax (PDF) for more information.

Am I penalized if I can't pay the full amount?

Yes. You’ll incur a late-payment penalty. You may qualify for relief. For additional help, see Penalty Relief.

Do I have to pay interest on the amount I owe?

Yes, we can't reduce interest for reasonable cause or first-time relief. We're required by law to charge interest, and it will continue to accrue until you pay in full. However, if we reduce your tax or penalty, the interest will automatically be reduced.


Tips for next year

Consider filing your taxes electronically. You can avoid mistakes and find credits and deductions that you may qualify for. In many cases, you can file for free. Learn more about e-file.

To avoid the same issue next year, correct your copy of this year's tax return. If you use a tax preparer, give them a copy or have them correct their copy.

Before filing your return, you can verify the estimated tax payments applied to the year by viewing your tax account.

Need Help?

  • You can authorize someone to contact the IRS on your behalf.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
  • If you can’t find what you need online, you can call the IRS at the 800, 866, or 888 number listed on the notice.