Moderate Risk
Understanding IRS Notice CP45:
Overpayment Applied to Other Tax Year
and How to Respond
Last Verified:
The Raw Code: What CP45 Actually Says
You requested that your overpayment be applied to next year's estimated taxes. The IRS has applied less than you requested because there is also a balance due for a prior year.
The Detangler™ — Plain English
You tried to roll your overpayment forward but the IRS intercepted it to pay an old debt. They're playing 3D chess with your tax accounts. Make sure that old debt is legitimate before accepting this.
What You Must Do Now
Verify the prior year debt is legitimate. If you dispute it, contact the IRS or a tax professional.
Get Free EA AssessmentFrequently Asked Questions
What is IRS Notice CP45?
You requested that your overpayment be applied to next year's estimated taxes. The IRS has applied less than you requested because there is also a balance due for a prior year.
What should I do when I receive CP45?
Verify the prior year debt is legitimate. If you dispute it, contact the IRS or a tax professional.
How serious is IRS Notice CP45?
Moderate Risk. Review and respond promptly to avoid escalation.