IRS Notice CP 23 - Estimated Tax Payment Discrepancy, Balance Due

This notice 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.

Sections of the Notice:

  • Header Section: This area contains the Notice Number, the applicable tax year, the notice date, your Social Security Number, and the IRS contact number.
  • Explanation Section: This section explains the reasons for the changes to your return and provides information on what you should do. The information generally contains a tabular comparison of the IRS figures to the figures from your tax return.
  • Response Section: If you agree with the adjustment, make the changes to your tax return records to reflect the IRS information. Send your payment for the balance due with the coupon provided with the notice. If you cannot pay the full amount due, you may contact the IRS to arrange an installment agreement. If you have questions or do not agree with the adjustment, the notice directs you to contact the IRS at the number or address listed in the header section.

Sample CP 23: PDF Pages 1-3

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.