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IRS Notice CP23 – Estimated Tax Discrepancy/Balance Due

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The IRS sends CP23 to notify you that due to a discrepancy between estimated tax credits claimed on your return and credits the IRS posted to your tax account, you have a balance due.

Type of Notice: Return accuracy

Likely next step: Address IRS return and account problems

Also see: IRS penalties, IRS bill for unpaid taxes

Why you received IRS Notice CP23

  1. You reported estimated tax payments when you filed a tax return.
  2. When the IRS compared the payments posted to your account with the payments claimed on the return, there was a discrepancy.
  3. The IRS changed the return to reflect the amount of payments posted to your account.
  4. The IRS sent CP23 to notify you of the discrepancy, of how the IRS changed the return and to advise you that a balance is now due. If you contact the IRS within 60 days of the date on the notice the IRS will reverse the changes. However, if your client is unable to substantiate the reversal, the IRS will forward the return for an audit.

Notice deadline: 21 days

If you miss the deadline: Additional penalties and interest will accumulate.

Want more help?

Your tax professional can deal with the IRS for you. Learn more about H&R Block’s Tax Audit & Notice Services. Or make an appointment for a free consultation with a local tax professional by calling 855-536-6504 or finding a local tax pro.

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