What This Notice Means
CP25 says the IRS corrected your return because the estimated tax payments you claimed didn't match the payments posted to your account. After the correction, your account balance is zero. You don't owe more, and you aren't due a refund because of the change.
In other words, the numbers changed but the bottom line came out even.
What to Do
Read the notice and the "What we changed on your return" section. Then compare the payments on the notice to your own records:
- Verify the IRS listed every estimated tax payment you made.
- Check any payment the IRS applied from the prior year's overpayment.
If You Agree
No response is required. Correct the copy of your return that you kept, but don't send it to the IRS. If you use a preparer, have them correct their copy too, so the same mistake doesn't carry into next year.
If You Disagree
Contact the IRS at the number on the notice by the date shown. If you think a payment was misapplied or not credited, call the number in the "Where to find more information" section. Have your return and proof of payment ready, such as canceled checks or bank records. The representative will review it with you and tell you what to do next.
Why It Matters
Even with a zero balance, a missing payment is money that went somewhere. It may be sitting on the wrong year or the wrong account. Find it now while the records are fresh.
Next Year
- Before you file, check your online account to confirm which estimated payments posted to the year.
- Use Form 1040-ES and Publication 505 to set the right payment amounts.
- If you need to fix something else on the return, file Form 1040-X.
If your estimated payments aren't showing up where they belong, call us at (813) 229-7100.