What This Notice Means
The IRS charged you a penalty for not paying enough estimated tax. The penalty was more than the maximum that could be charged, so the IRS reduced it. That's good news. The notice shows where your account stands now.
What to Do
- Review the notice. It explains how much you owe and how to pay.
- If you have a balance due, pay it by the due date on the notice. If you can't pay in full right now, look at payment options.
- If you're owed a refund, you don't need to do anything. You should receive it in 4 to 6 weeks. Where's My Refund? shows your date once the refund is approved.
Avoiding the Penalty Next Year
Most taxpayers avoid this penalty if they owe less than $1,000 after filing, or if they paid at least 90% of the current year's tax or 100% of the prior year's tax, whichever is less.
- Higher income: if your adjusted gross income is more than $150,000 ($75,000 if married filing separately), the prior-year figure is 110% instead of 100%.
- Farmers and fishermen: if at least two-thirds of your gross income is from farming or fishing, you only need to prepay two-thirds of the current year's tax or 100% of the prior year's tax, whichever is less. Use Form 2210-F.
When Estimated Payments Are Due
For calendar year taxpayers, estimated payments are generally due April 15, June 15, and September 15, and January 15 of the next year. Fiscal year filers pay on the 15th day of the 4th, 6th, and 9th months of the tax year and the 1st month of the next year.
If you have wages, the IRS Tax Withholding Estimator can show whether enough is being withheld. Withholding counts toward the amount you need to prepay.
If you received a CP30B notice and still owe a balance you can't pay, call us at (813) 229-7100.