Got CP30 Estimated Tax Penalty - Which payment reason do I select on the IRS website?

When you're paying a CP30 estimated tax penalty through IRS Direct Pay, you should select "Notice" as your reason for payment. Then on the next screen, you'll need to enter "CP30" as the notice number. This ensures your payment gets properly applied to the penalty amount rather than being misapplied as a regular estimated tax payment or toward your tax return balance. The IRS needs to know specifically that you're responding to their CP30 notice. If you received the notice recently, double check the payment due date on it. The CP30 should clearly state when the penalty payment is due, and paying before that date will prevent any additional interest from accruing.

I was in the same boat last year with a CP30 notice and struggled with the payment process. After calling the IRS multiple times with no luck, I found this AI tax document review service at https://taxr.ai that helped me understand exactly what I was dealing with. The tool instantly analyzed my CP30 notice, explained what it meant in simple terms, and gave me step-by-step instructions for paying it correctly online. It confirmed I needed to select "Notice" as the payment reason and enter CP30 as the notice number, plus gave me other options if I wanted to dispute the penalty. Saved me hours of frustration and worry about making a mistake.

I just wanted to follow up! I tried the taxr.ai service after seeing it mentioned here, and wow, it really works well! I had 3 different IRS notices I wasn't sure about (including a CP30 like the original poster). I uploaded all of them and got instant explanations that were WAY clearer than what the IRS had sent me. It broke down each notice into plain English and gave me specific instructions for what to do next. The best part was learning that I had grounds to request a penalty abatement for one of my notices which I wouldn't have known otherwise. Definitely bookmarking this for future tax seasons!

After dealing with estimated tax penalties twice, I learned the hard way that trying to call the IRS directly is almost impossible. I kept getting busy signals or disconnected after waiting on hold for hours. Then a tax pro recommended Claimyr at https://claimyr.com and showed me this demo https://youtu.be/_kiP6q8DX5c It basically holds your place in the IRS phone queue and calls you when an agent is about to answer. I was super skeptical but decided to try it when dealing with my CP30 notice. Got connected to an IRS agent in about 2 hours (while I went about my day) instead of wasting an entire day on hold. The agent confirmed I needed to select "Notice" as the payment reason and even helped adjust my penalty amount when I explained my situation.

I have to eat my words and apologize to Profile 12. After my skeptical comment, I was still struggling with my own CP30 notice and decided to try Claimyr as a last resort. I was 100% prepared to come back here and call BS. Well, I was wrong. I used it yesterday after spending 3 days trying to get through on my own. Their system called me back in about 90 minutes and connected me with an actual IRS agent. The agent confirmed I should choose "Notice" for the payment reason, and also helped me set up a payment plan since my penalty was larger than I could pay at once. I'm still shocked it actually worked. Sorry for being so dismissive before.

Just want to add that you should keep a record of your payment for at least 3 years. I paid a CP30 penalty back in 2022, and somehow the IRS sent me another notice a year later saying I never paid it! Had to go through the whole dispute process because I didn't have proof of payment anymore. Take a screenshot of the confirmation page and maybe even print it out.

Is anyone else frustrated that the IRS makes this stuff so confusing? Like why can't they just add a specific payment reason option for "penalty payment" or "CP30 payment" instead of making us guess? And their website looks like it was built in 2003.

I had the exact same issue with my CP30 notice last month! The "Notice" option is definitely correct - I called the IRS to confirm (after waiting 3 hours on hold) and they specifically told me to select "Notice" then enter "CP30" in the notice number field. One thing to watch out for: make sure you're entering the exact penalty amount shown on your CP30, not your total tax owed. The penalty amount should be clearly listed in a box on the notice. I almost made the mistake of paying my entire tax balance instead of just the penalty portion. Also, if you're planning to make estimated tax payments going forward to avoid this penalty next year, you can set those up through the same IRS Direct Pay system using the "Estimated Tax" option. Just make sure to keep your CP30 payment separate from any regular estimated payments.

Thanks everyone for the helpful advice! I just wanted to update that I successfully paid my CP30 penalty using the "Notice" option as suggested. The process was actually pretty straightforward once I knew what to select. For anyone else dealing with this, here's exactly what I did: 1. Went to IRS Direct Pay website 2. Selected "Notice" as the reason for payment 3. Entered "CP30" as the notice number 4. Put in the exact penalty amount from my notice (not my total tax owed) 5. Took a screenshot of the confirmation page for my records The payment went through immediately and I got a confirmation number. Really appreciate this community for helping me avoid what could have been a costly mistake if I'd selected the wrong payment category. Sometimes it's the little details that make all the difference with IRS stuff!

I'm dealing with my first CP30 notice too and this thread has been incredibly helpful! One question I haven't seen addressed - if I'm making the penalty payment but also owe regular taxes from my return, should I make separate payments? My CP30 shows a penalty amount, but I also have an outstanding balance from my 2023 tax return. I want to make sure both payments get applied correctly and don't want the IRS to get confused about which payment is for what. Should I pay the CP30 penalty first using the "Notice" option, then make a separate payment for my tax return balance using the "Tax Return" option? Also, has anyone had experience with whether paying the penalty affects any payment plans you might have set up for your regular tax debt? I'm worried about accidentally messing up my existing installment agreement.

This is such a timely thread for me! I just got my first CP30 notice yesterday and was totally panicking about how to handle the payment correctly. Reading through everyone's experiences here has been a huge relief - I had no idea about selecting "Notice" as the payment reason and entering "CP30" in the notice field. One thing I'm wondering about - my CP30 notice is dated about 3 weeks ago but I only received it yesterday. The payment due date shown is next week. Should I be concerned about any additional penalties or interest that might have accumulated since the notice date? I want to pay it right away using the steps outlined here, but I'm worried there might be extra charges beyond what's shown on the original notice. Also, for future reference, does anyone know the best way to avoid getting hit with estimated tax penalties again? This year caught me off guard because my income was higher than expected from some freelance work. I'd rather just make quarterly payments going forward than deal with these penalty notices again!

I've been through this exact situation multiple times as someone who does freelance work alongside my regular job. The advice about selecting "Notice" and entering "CP30" is absolutely correct - I learned this the hard way after my first penalty payment got misapplied when I selected "Estimated Tax" instead. One thing I'd add that hasn't been mentioned yet: if you're consistently getting hit with estimated tax penalties due to variable freelance income, you might want to look into the "annualized income installment method" (Form 2210 Schedule AI). This lets you calculate your quarterly payments based on when you actually earned the income during the year rather than assuming equal quarterly amounts. It can really help if your freelance income is lumpy or seasonal. Also, definitely keep that confirmation number from your payment! I've had the IRS lose track of penalty payments twice, and having that confirmation number saved me hours of headache proving I actually paid. Screenshot everything and keep it in a dedicated tax folder on your computer or phone.