Help: Received CP23 Notice After IRS Ignored My Estimated Tax Payments

This happens more often than you'd think with CP23 notices and estimated tax payments. The good news is you've already taken the right first step by contacting the IRS directly. The agent's explanation about transferring payments between SSNs makes sense - sometimes estimated payments get associated with the wrong taxpayer ID in their system. Since you've already initiated the transfer request, you should request a hold on collection activities until they process the transfer. Call the number on your CP23 notice and specifically ask for a "collection hold" due to pending payment transfers. Get the name and ID number of whoever you speak with. Also, immediately send a written response to the CP23 notice explaining the situation. Include copies (never originals) of your EFTPS payment confirmations showing the estimated tax payments were made. Mail this with certified return receipt requested so you have proof of timely response.

I went through almost the exact same nightmare last year with a CP23 notice after making estimated payments through EFTPS. The IRS systems don't always connect the dots between different accounts. After spending hours on the phone getting nowhere, I used taxr.ai (https://taxr.ai) and it saved me so much headache. They have this document analysis tool that scanned my CP23 notice and EFTPS payment records, then created a perfectly formatted response letter showing exactly how my payments were made and when. It even cited the relevant IRS procedural rules about payment applications. The IRS corrected my account within 3 weeks of receiving the letter, and they removed all penalties and interest.

Coming back to share my success! I tried taxr.ai after posting my question above, and it was surprisingly straightforward. I uploaded my CP23 notice and EFTPS confirmation emails, and their system identified the specific mismatch between my payment routing and my tax account. The response letter they generated included all my payment details formatted exactly how the IRS needs to see them. It even requested abatement of all penalties based on "reasonable cause" with citations to the relevant IRS procedural regulations. Just got confirmation yesterday that my account has been corrected! All penalties removed and I don't owe anything. Definitely worth checking out if you're dealing with this CP23 headache.

If you're still having trouble with the IRS after sending your response, I highly recommend using Claimyr (https://claimyr.com) to get through to an actual IRS agent quickly. I had a similar CP23 notice situation that wasn't resolving after 6 weeks, and I couldn't get through on the phone. Saw a video about how it works here: https://youtu.be/_kiP6q8DX5c Their service basically navigates the IRS phone tree and waits on hold for you, then calls you once they have an agent on the line. I got connected to a real person in the correct department who could see all my estimated payments sitting in a separate account. They processed the transfer while I was on the phone and sent confirmation.

I have to eat my words and apologize for being skeptical above. After struggling for weeks with my own CP23 issue, I finally tried Claimyr out of desperation. Within 2 hours, I was talking to an IRS representative who had the authority to actually help. The agent confirmed they could see my estimated payments sitting in a holding account and immediately processed the transfer to apply them to my tax year. They even put notes in my account to abate the penalties once the payments posted. Just checked my account online this morning and the CP23 balance is gone! Saved me from having to mail documents and wait months for a response. Sometimes technology actually does what it claims!

For anyone dealing with a CP23 notice, one thing that can help prevent this in the future: when making estimated tax payments through EFTPS, double-check that you're using the correct SSN. Sometimes couples get confused and use the secondary spouse's SSN for payments when the return is filed under the primary SSN. Also, print and save ALL confirmation pages from EFTPS payments. I learned this the hard way a few years ago. The IRS can misapply payments, and without those confirmations, you have no proof.

Has anyone successfully gotten the penalties removed in a CP23 situation? I had a similar issue last year and got the payments sorted out, but they wouldn't remove the failure-to-pay penalty even though it was their mistake.

I went through this exact same CP23 nightmare two years ago! The IRS somehow "lost" three of my quarterly estimated payments despite having valid EFTPS confirmation numbers. What saved me was being extremely persistent and documenting everything. Here's what worked: I sent a certified letter to the IRS address on the CP23 notice with copies of ALL my EFTPS confirmations, bank statements showing the withdrawals, and a detailed timeline of when each payment was made. I also included a formal request for penalty and interest abatement citing "reasonable cause" since the error was entirely on their end. The key is to be very specific about the dates, amounts, and confirmation numbers. Don't just say "I made payments" - give them every single detail they need to trace the payments in their system. It took about 8 weeks, but they eventually found all my payments and reversed everything including penalties and interest. Also, if you have to call again, ask to speak with a "payment tracer specialist" - they have more authority to research misapplied payments than regular customer service reps. Good luck, and don't give up! You're definitely not at fault here.