How do I respond to a CP23 notice after forgetting to attach 1042-S for tax withholding proof?

I'm a grad student on J-1 visa who just became a tax resident for the 2024 tax year. This whole tax situation has me really stressed out! My university withheld a pretty substantial amount of tax from my research stipend last year, about $8,450, and issued me a 1042-S form for it (which I know is typically for nonresident aliens). The university wasn't aware I'd be filing as a resident, so they processed my withholding as if I was still a nonresident. When I filed my taxes, I completely forgot to attach the 1042-S Copy C that was supposed to go to the IRS. Now they've sent me a CP23 notice last week basically rejecting the withholding amount I claimed on Form 1040, line 26. They're saying I need to pay the "corrected" tax amount by the 15th of next month. I'm not sure how to handle this situation: Option 1: Should I just pay what the IRS says I owe now and then file a 1040-X amendment later with the 1042-S attached? I'm worried that paying their "corrected" amount might mean I'm agreeing with them and might mess up my chance to get that withholding credited later. Option 2: Or should I respond directly to the CP23 notice by sending in the 1040-X amendment WITH the 1042-S and a letter explaining what happened? Any advice would be so appreciated! I've never dealt with a CP23 before and don't want to make this situation worse than it already is.

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18 comments

Zainab Ibrahim

•8M

This is actually a pretty straightforward situation to resolve, though I understand why it's stressful! When the IRS issues a CP23 notice, they're essentially saying they don't have evidence of the tax withholding you claimed. The best approach is Option 2 - respond directly to the CP23 notice. Include a copy of your 1042-S (Copy C) that shows the withholding, along with a brief letter explaining that you inadvertently omitted this documentation with your original filing. You don't need to file a 1040-X in this case since you're not changing any figures on your return - you're simply providing the supporting documentation that was missing. Make sure to respond within the timeframe indicated on your notice (usually 30 days). Send everything via certified mail so you have proof of delivery. Include your phone number in your response letter in case they need to contact you for clarification.

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Zainab Ibrahim

•8M

The CP23 is a proposed adjustment, not a final determination. Responding with the proper documentation before the due date will halt the collection process. The IRS is giving you the opportunity to provide evidence before finalizing the adjustment. If you're particularly concerned about potential penalties, you could include a statement requesting penalty abatement based on reasonable cause (forgetting to include the form was an honest oversight). The IRS is generally understanding in cases like this where you're proactively addressing the issue with proper documentation.

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Connor O'Brien

•8M

I went through almost the exact same situation last year! I had a 1042-S from my fellowship that I forgot to send in, and got that dreaded CP23 notice. I was completely overwhelmed trying to figure out how to fix it until I found https://taxr.ai - it saved me so much stress! I uploaded my CP23 notice and my 1042-S form, and it analyzed everything and generated a perfect response letter explaining exactly what happened. It even gave me specific instructions for what forms to include and how to package everything up for the IRS. The whole process took maybe 15 minutes instead of the hours I spent stressing and researching. The best part was that the IRS accepted my explanation and documentation without any issues. My withholding credit was restored, and I didn't have to pay anything extra. Seriously worth checking out if you're dealing with this type of notice!

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Connor O'Brien

•8M

It absolutely worked with international forms! That's why I was so impressed. It specifically recognized the 1042-S and knew exactly how to handle it with my resident status. The guidance was super detailed - it even told me which specific IRS address to use for my response and what supporting documents to include beyond just the 1042-S. I heard back from the IRS about 4 weeks after sending in my response. The response was just a simple letter confirming that my account had been corrected and the issue was resolved. The waiting was definitely the hardest part, but once I sent in the proper documentation, everything was fixed without any additional action needed from me.

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Yara Sabbagh

•8M

Just wanted to update on my situation since I took the advice about using taxr.ai for my CP23 issue. I was skeptical at first since my tax situation involves both international forms and university stipends which always seems to confuse regular tax software. I'm honestly shocked at how well it worked! The system immediately recognized my 1042-S issue and the CP23 notice. It created a detailed response letter explaining that I was a tax resident despite having a 1042-S (which the university had issued before my status changed). The response package it generated included a cover letter specifically referencing the CP23 notice number, instructions to attach the 1042-S Copy C, and even suggested including my tax resident calculation to prevent further confusion. I just heard back from the IRS yesterday - they accepted everything and adjusted my account to reflect the proper withholding. Saved me over $7,000 in taxes I didn't actually owe!

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Paolo Rizzo

•8M

I had a similar issue a few months back but with some W-2 withholding that didn't get properly recorded. After getting my CP23 notice, I spent WEEKS trying to reach someone at the IRS to explain the situation. Constant busy signals, disconnects, and being on hold for hours only to be told I was transferred to the wrong department. I finally discovered https://claimyr.com which got me connected to an actual IRS agent within 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when an agent is ready. The agent was able to look at my account, confirm they received my documentation (which I had mailed weeks earlier but wasn't processed yet), and put a temporary hold on collections while they sorted it out. For time-sensitive issues like CP notices with approaching deadlines, being able to actually speak to someone made all the difference in getting it resolved quickly.

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Paolo Rizzo

•8M

They use the exact same IRS phone numbers we all have access to, but they have an automated system that continually redials and navigates the phone tree until they get through. It's basically what you'd do manually but with technology that doesn't get tired or frustrated. I was equally skeptical at first! I figured I could just keep trying myself, but after two weeks of failed attempts, the approaching deadline made me desperate. The difference is they have systems constantly dialing and can juggle multiple attempts simultaneously until one gets through. It's not that they have special access - they're just more efficient at the frustrating process of getting through. When you think about the value of your time and the stress of approaching deadlines, it became worth it to me really quick.

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Amina Sy

•8M

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, my situation with the IRS became urgent when I received a follow-up notice threatening liens if I didn't respond to my CP23 within 10 days. In desperation, I tried the service, and within 38 minutes (I timed it), I was connected to an IRS representative who was able to pull up my account. She confirmed they had received my documentation but it was sitting in a processing backlog. She put notes on my account to prevent any collection actions and gave me a confirmation number for the call. The peace of mind from actually speaking to someone and getting confirmation was absolutely worth it. Sometimes you need to eat your words, and I'm happy to do so in this case. For time-sensitive tax issues, being able to actually speak with the IRS is invaluable.

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Oliver Fischer

•8M

Don't overlook the importance of keeping really good records of all your communications with the IRS! I went through something similar (different notice but same missing documentation issue) and what saved me was: 1. Making copies of EVERYTHING before sending 2. Using certified mail with return receipt 3. Keeping a detailed log of all calls/responses 4. Taking photos of all documents before mailing them The IRS actually lost my documentation the first time I sent it, but because I had the certified mail receipt and copies of everything, I was able to prove I had responded in time. Just sending in the correct forms isn't always enough - you need to protect yourself with proper documentation of the process too!

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Oliver Fischer

•8M

I create a dedicated folder for each tax issue - either physical or digital depending on your preference. I label everything with the tax year and notice number (like "2024 - CP23 Response"). For physical organization, I use a three-part system: 1) Original documents from IRS, 2) Copies of my responses, and 3) Proof of delivery/correspondence. I also keep a simple log on the folder cover with dates, actions taken, and any reference numbers. For digital organization, I scan everything and create a similar folder structure, with filenames that include the date in YYYY-MM-DD format so they sort chronologically. I also keep a simple text file that logs all actions and communications. The key is consistency - whatever system you choose, stick with it for all tax matters. When you're stressed about a tax issue, having an organized system makes it much easier to find what you need quickly.

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