Solved

IRS CP45 Letter with $400 Reduction in Estimated Payment Credit

Forum|Forum|3 years ago
February 25, 2023
1 reply
0 views

I received a letter last April with identifier CP45 from IRS after filing for tax year 2021. I understand this is regarding the IRS indicating they won't apply a tax overpayment to this year's (2022) estimated tax payments. The letter indicated that more information would be sent along explaining the adjustment, but it never was...sigh.

The difference between what I had overpaid and the change(s) IRS made that reduced that amount available for this year's estimated payments, i.e. where they felt my filing was in error, **was exactly $400.**

Does anyone have a good guess, or maybe actual experience, with this situation? Not just the CP45 letter, with is mostly informational, but such a round number of $400? Obviously, there is no point in actually calling them at the number on the letter (life is short, after all), so no need to suggest. Thanks...

Not A Product Question

Best answer by VolvoGirl

First of all last April 2022 you filed your 2021 return (not 2022) and you applied some of your refund to 2022 which we are filing this year in 2023.

Sound like you need to reduce the amount you are applying from last year? If it is applying your last year's refund to this year and you need to remove it......

Go to

Federal Taxes

Deductions and Credits

Then scroll way down to Estimates and Other Taxes

Other Income Taxes - Click the Start or Update button

Next page scroll down to 2021 Refund Applied to 2022

Click Start or Update and then delete the amount

E

ErnieS0

Did you receive a CP2000 notice? You said, “The difference between what I had overpaid and the change(s) IRS made that reduced that amount available for this year's estimated payments, i.e. where they felt my filing was in error, **was exactly $400.**”

The notice adjusting your return will explain why IRS said you owed $400 more in that than you listed on your tax return. Since your tax liability went up by $400, your refund (which you applied to your estimated payment) would be reduced by $400.

You can get a free IRS transcript and compare those numbers against your original filing if you don’t have the original adjustment notice.

See Get Your Tax Record.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

M

mblatz01Author

Hello. No, I've only received the CP45 letter indicating what happened (the reduction), but nothing subsequently that would indicate the why.

The $400 seemed very round-number to me, so I posted in hopes that others might have received same letter for same reason (whatever it might be), as opposed to something specific to me or my individual filing, i.e. a typo or fat finger mistake.

Thanks for tip about transcript...I'll look into it.

VolvoGirlAnswer

Employee