If you received an IRS CP30 notice, it means the IRS charged a penalty because not enough tax was paid throughout the year through withholding or estimated tax payments.
This notice can be surprising, especially if you already filed your taxes successfully with april. In most cases, the IRS is saying that not enough taxes were paid during the year — even if your return was filed correctly.
Why did I get a CP30 notice?
The IRS sends a CP30 notice when it believes you:
Didn’t make required estimated tax payments
Made estimated tax payments late
Didn’t have enough taxes withheld from your paycheck or income throughout the year
This penalty is called an underpayment of estimated tax penalty.
You may receive this notice if you:
Are self-employed or do gig work
Have income without tax withholding, like 1099 income
Withdrew retirement funds
Had multiple jobs
Owed a large amount when filing your return
Does april calculate estimated tax penalties?
No. april doesn’t calculate estimated tax penalties when you file your return.
Because the IRS calculates these penalties separately after reviewing your account, they’re not included in april’s Accuracy Guarantee.
The IRS may send a CP30 notice weeks or months after your return is accepted.
What should I do if I receive a CP30 notice?
First, review the notice carefully. The IRS will explain:
Why the penalty was charged
How much you owe
When payment is due
Then:
If you owe a balance, pay the amount due by the deadline listed on the notice
If you’re receiving a refund or have no balance due, you usually don’t need to take any action
If you can’t pay the full amount right away, the IRS offers payment plan options.
Can the IRS remove or reduce the penalty?
Possibly. The IRS may reduce or remove the penalty in certain situations, including if:
You or your spouse retired within the last 2 years after age 62
You became disabled
Your income was earned unevenly during the year
Most of your taxes were withheld later in the year instead of evenly throughout the year
You can review the instructions included with your notice or contact the IRS directly to ask about penalty relief.
How can I avoid a CP30 notice next year?
You may be able to avoid future penalties by making sure enough tax is paid throughout the year.
Here are a few ways to help avoid another CP30 notice:
Increase withholding from your paycheck
Make quarterly estimated tax payments if you have self-employment or 1099 income
Use the IRS Tax Withholding Estimator to check your withholding
Review IRS Form 1040-ES to determine whether estimated payments are needed
Estimated tax payments are generally due:
April 15
June 15
September 15
January 15 of the following year
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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