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Published:   |   Last Updated: December 6, 2023

Notice CP23 – Estimated Tax Credits Discrepancy – We Changed Your Return to Match Your Credits or Payments Posted to Your Account – Balance Due 

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Notice Overview

The IRS changed your tax return because it found a difference between the amount of estimated tax payments or other payments on your return and the amount the IRS posted on your account. Your return may have been changed due to an error you made on your return. This notice explains the changes the IRS made and provides a calculation of the amount you owe including penalties and interest.  

This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.

What does this mean to me?

The tax return you filed may show a refund, no balance due, or a smaller balance due than what is in the notice. This notice informs you the IRS made changes to your return that increases the amount you owe. You now owe tax based on the changes explained in the notice.

How did I get here?

The IRS changed your return to match their records or to correct an error on the return, so the IRS sent you a notice to explain the changes and the amount you owe.  

View Notice Online:

View your federal tax records and manage your communication preferences online

Sign in to your Online Account to:

  • Make payments
  • Go paperless for certain notices
  • Get email notifications for new notices

What are my next steps?

The first thing to do is to check the return address to be sure it’s from the Internal Revenue Service and not another agency. 

Is it from the IRS? 

If it’s from the IRS, the notice will have instructions on how to respond. If you want more details about your tax account, you can order a transcript Also, review your notice or letter to see if there is a specific website link to visit for additional information. This is usually located at the end of the notice or letter. 

 Your Tax Calculations:  

 Compare the payments on the notice to your records 

  • Verify the IRS listed all your estimated tax payments 
  • Check the payments the IRS applied (if any) from the prior year. 

The most common cause is an incorrect entry on the estimated tax line of the tax return.  

 If you disagree 

 Contact the us within 60 days from the date of your notice: 

  • By telephone – call the IRS at the toll-free number shown on your notice. Some cases require additional information that you may provide verbally.  
  • By mailinclude a copy of the notice along with your correspondence or documentation and allow 30-60 or more days for a resolution. 

Pay your balance 

If you agree with the changes made to your return and can pay the amount in full upon receipt of the notice, you can mail your payment or pay electronically at Make a Payment on IRS.gov. You can also sign up to view your account information securely online. Once your federal tax debt is paid in full, then your tax account will be returned to the IRS and closed. 

If you can’t pay the full amount, you need to decide which payment options might work for your situation and contact the IRS to set up a payment plan or discuss other alternatives.  

Being proactive in addressing the tax debt may prevent additional penalty and interest charges. For specifics, see I Got a Notice From the IRS. 

Where can I get additional help?

Understanding your Notice or Letter

Get Help topics

Browse common tax issues and situations at TAS Get Help

If you still need help

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t working as it should. If you qualify for our assistance, which is always free, we will do everything possible to help you.

Visit www.taxpayeradvocate.irs.gov or call 1-877-777-4778.

Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, see the LITC page on the TAS website or Publication 4134, Low Income Taxpayer Clinic List. This Publication is also available online at www.irs.gov or by calling the IRS at 1-800-829-3676.

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CP23 – Estimated Tax Credits Discrepancy – We Changed Your Return to Match Your Credits or Payments Posted to Your Account – Balance Due