CP 23 Tax Notice: Changes Made to Estimated Total Tax

When a taxpayer receives a CP 23 IRS Notice in the mail, it is to make them aware of a situation in which the amount of Estimated Tax Payments being reported on their tax return differs from IRS records. This notice may also show the taxpayer that the IRS has made certain changes to their account to reflect this problem. Because there is a difference or discrepancy in the amounts, the causes there to be a balance due on the taxpayers account.

IRS Notices

There are two pages included with this notice that will contain the following information on Page 1:

  • Income
  • Adjusted Gross Income on the return
  • Taxable Income
  • Payments & Credits
  • Withheld Tax
  • Estimated Tax payments
  • Credits
  • Payments
  • Total of payments & credits
  • Tax
  • Total amount of tax on return
  • Underpaid taxes plus:
  • Penalty
  • Interest
  • Amount owed
  • Subtract payments not included
  • You would then owe the adjusted amount

If you contest the adjustments then you will need to have your tax attorney contact the IRS to dispute the amount. Provide your tax attorney with a copy of the tax return in question, along with any paperwork or receipts that show you paid this debt. This information is vital if the IRS is going to prove that any payment made, that was not applied to your account.

The second page of the notice includes explanations of change, a table showing a statement of your estimated tax account, and estimate tax filers notes. If you keep accurate records and retain the services of a tax attorney, you should be able to find a quick and easy resolution to any problems you may be having.