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IRS Notice CP25

CP25: We Fixed Your Estimated Tax Payments — Your Balance Is Zero

The IRS changed your return because your estimated tax payments didn't match their records, but you don't owe anything and aren't getting a refund.

Why you might get this

  • The amount of estimated tax payments you listed on your return was different from the amount the IRS actually had on file for your account.
  • The IRS corrected this difference, and after the fix your account balance came out to zero.
  • You may have entered a payment amount that didn't match what was received, or a prior-year payment was applied differently than you expected.

The deadline

If you agree with the change, you don't need to do anything and there's no deadline to worry about. If you disagree, contact the IRS by the date printed on your notice. This is a correction notice, not a bill — you neither owe money nor are owed a refund.

This notice doesn't carry a fixed response deadline, but it still deserves attention — see what to do below.

Got this exact letter? Solace reads YOUR notice and tells you, in plain words, what it says, any deadline, and your next step — free, no account needed.

Decode YOUR CP25 — free

What to do

  1. Read your notice carefully and find the section that shows what was changed on your return.
  2. Compare the estimated tax payments listed on the notice to your own records, like cancelled checks or bank statements.
  3. Confirm the IRS listed all of your estimated tax payments and correctly applied any credit carried over from a prior year.
  4. If everything looks right, do nothing — just fix the copy of the return you keep for your records (don't mail it in).
  5. If something looks wrong, call the phone number on your notice by the date shown, with your tax return and payment proof ready.
  6. Check your IRS Online Account to view your balance, payments, and tax records.

What happens if you ignore it

If you agree with the change, ignoring this notice is fine — no action is needed and your balance stays at zero. But if the IRS missed a payment you actually made and you don't speak up by the date on your notice, you could lose the chance to get that payment properly credited.

If you believe the IRS misapplied or didn't credit a payment, call the number on your notice with your records ready. If you can't resolve it, you may qualify for free help from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic.

A CP25 notice means the IRS found a difference between the estimated tax payments you reported on your return and the payments they actually posted to your account. Estimated tax payments are the amounts you pay during the year when you don't have enough tax withheld from a paycheck.

The good news: this notice is not a bill. After the IRS made the correction, your account balance came out to zero — you don't owe extra money, and you're not getting a refund.

Here's what to do. Read the notice and find the part that explains what changed. Then compare the payments it lists against your own records, such as cancelled checks or bank statements. Make sure every payment you made is listed and that any prior-year credit was applied correctly.

If it all matches, you don't need to respond — just correct the copy of the return you keep at home. If a payment is missing or misapplied, call the number on your notice by the date shown, with your documents ready.

Solace can keep an eye on your IRS account so you'll know right away if your payments and balance ever change.

Got this exact letter? Solace reads YOUR notice and tells you, in plain words, what it says, any deadline, and your next step — free, no account needed.

Decode YOUR CP25 — free