Received CP23 notice from IRS but already paid my estimated taxes - what's going on?

Unfortunately, this situation is more common than you'd think, especially during busy filing seasons. The CP23 notice is specifically sent when the IRS believes you have an unpaid balance because your estimated tax payments don't match their records. The good news is that you've done the right thing by calling them. Since they've acknowledged receiving your payment but haven't processed it yet, you're in a better position than many others. Make sure you keep copies of all your payment confirmations and the details from your calls (including dates, representative names if possible, and case numbers). The processing time they mentioned (12 weeks) is their standard line, but as you've discovered, it can sometimes take longer. The IRS is still dealing with significant backlogs in some departments. Your refund is likely being held until this discrepancy is resolved.

I went through almost the exact same situation last year! After endless phone calls getting nowhere, I discovered taxr.ai (https://taxr.ai) and it honestly saved me so much stress. Their system analyzed my notices and payment records, then generated a proper response letter that cited all the relevant IRS procedures about payment processing delays. The most helpful part was that they explained how my particular CP23 notice resulted from a timing mismatch between different IRS systems. Apparently, the payment processing system and the tax return processing system don't communicate in real-time, which creates these weird situations where one department thinks you owe money while another has your payment sitting unprocessed.

Just wanted to follow up - I was skeptical about taxr.ai but decided to try it with my unprocessed payment situation. I'm honestly impressed! The system immediately identified that my CP23 was triggered by a system mismatch and generated a response letter citing Internal Revenue Manual sections about payment processing timeframes. The letter they helped me create included references to specific IRS procedures I never would have known about. I sent it in, and two weeks later I got confirmation that my payment was properly applied and the CP23 was essentially canceled. My refund was released shortly after. Definitely worth trying if you're in this situation.

After dealing with a similar issue last year, I discovered that the IRS phone lines are absolutely useless for resolving these kinds of problems quickly. I wasted HOURS getting nowhere until someone told me about Claimyr (https://claimyr.com). They have this clever system that navigates the IRS phone tree and gets you connected to an actual human representative without the endless hold times. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was skeptical at first, but it got me connected to a senior IRS agent who could actually see both my payment record AND my account status at the same time (apparently regular agents often can't see both systems simultaneously, which causes confusion). She was able to flag my account with a note explaining the payment was received but not processed, which stopped any further notices while they sorted it out.

I need to apologize for my skepticism about Claimyr. After posting my comment, I had another frustrating day trying to reach the IRS about my own notice issues. Out of desperation, I finally tried the service, and I'm shocked at how well it worked. I got connected to an IRS agent within about 40 minutes (after previously spending HOURS getting nowhere on my own). The agent I spoke with was able to see both my payment record and processing status. He placed a 9-week hold on any collections while my payment processes and added detailed notes to my account about the situation. He even gave me his direct ID number to reference if I need to call back. I've been dealing with tax issues for years and never had such a productive call with the IRS. Consider me converted.

One thing to watch out for with CP23 notices - check if they've also charged you interest and penalties! Even if they eventually process your payment correctly, sometimes the interest and penalties don't automatically get removed. You'll need to specifically request for those to be abated once your payment is properly applied.

Just a word of caution - don't ignore the CP23 even though you know you paid! My brother was in this exact situation, thought it would sort itself out, and ended up with a tax lien because he didn't formally respond to the notice. The IRS systems are so disconnected that one department can be taking collection actions while another is slowly processing your payment.

This is such a frustrating situation, but you're definitely not alone! I went through something very similar last year with a CP14 notice (slightly different but same payment processing issue). One thing that really helped me was keeping detailed records of EVERYTHING - payment confirmations, call dates, representative names or ID numbers, case numbers, etc. I created a simple spreadsheet with dates, times, who I spoke with, and what they told me. This became invaluable when I had to escalate the issue later. Also, don't just rely on phone calls. Send a written response to the CP23 notice explaining your situation and include copies of your payment proof. Mail it certified so you have delivery confirmation. The IRS may be slow, but they do respond better to written documentation in my experience. If this drags on much longer, consider requesting to speak with a manager or filing a complaint with the Taxpayer Advocate Service. They can sometimes cut through the bureaucratic nonsense when you're stuck in processing limbo through no fault of your own. Hang in there - it will get resolved, it's just unfortunately going to take longer than it should!

I'm dealing with a very similar situation right now! Got a CP23 notice last week even though I made my estimated payment in February. The frustrating part is that I can see the payment was deducted from my bank account, but it's like it disappeared into a black hole at the IRS. What's been helpful for me is documenting everything in writing. I sent a certified letter to the IRS address on the CP23 notice explaining that I made a timely payment and included copies of my bank statement showing the deduction and the confirmation number from when I paid online. I also referenced the phone calls I made (with dates and the representatives' ID numbers when they gave them to me). The key thing I learned is that you need to respond to the CP23 in writing even if you've already called multiple times. The phone representatives are helpful for getting information, but a written response creates an official record that can prevent further collection actions while they sort out the processing delay. Also, make sure to keep copies of EVERYTHING - the CP23 notice itself, your payment confirmations, bank statements, and any correspondence you send. If this escalates, you'll need that paper trail. It's incredibly frustrating that we have to jump through all these hoops when the problem is clearly on their end, but unfortunately that's the reality of dealing with IRS processing delays. Hang in there!

I'm going through this exact same nightmare right now! Made my estimated payment in December, got confirmation, money was taken from my account, but somehow the IRS has no record of it processing. Just got my CP23 yesterday and I'm honestly panicking. What's really getting to me is that I did everything right - paid early, kept all my confirmations, even called to verify they received it. But now I'm being treated like I'm some tax dodger when the problem is clearly their broken system. Reading through everyone's experiences here is both comforting (I'm not alone) and terrifying (this could drag on for months). I'm definitely going to send a certified letter response to the CP23 like several people suggested, and I'm seriously considering trying one of those services mentioned to get through to an actual human who can help. Has anyone had success getting the IRS to put a formal hold on collection actions while this gets sorted out? That's my biggest fear - that while I'm waiting for them to find my payment, they'll start adding penalties or worse. The whole situation is just so backwards - we shouldn't have to fight this hard to prove we paid our taxes when they're the ones with the processing problems!

I feel for you - this exact scenario happened to me two years ago and it's absolutely maddening! The disconnect between IRS payment processing and their notice system is a real problem that affects thousands of taxpayers every year. Here's what I learned from my experience: First, absolutely respond to the CP23 in writing even though you've called. Include copies of your payment confirmation, bank statements showing the deduction, and reference your previous calls with dates and any rep ID numbers you got. Send it certified mail to create a paper trail. Second, when you call back (and you'll probably need to call again), ask specifically for a "payment processing tracer" to be initiated on your account. This is different from just having them look up your payment - it's a formal process to track down payments that are stuck in their system. Also request a collection hold while the tracer is active. The most important thing I learned: don't assume this will resolve itself automatically once they find your payment. You'll likely need to follow up to ensure any penalties and interest are properly removed. The IRS rarely reverses these automatically even when the delay was entirely on their end. Document everything, stay persistent, and know that while frustrating, this will eventually get resolved. You paid on time and have proof - that's what matters most.

I've been following this thread closely because I'm dealing with a similar CP23 situation, and I wanted to share something that might help others avoid this mess in the future. After going through payment processing delays twice now, I've learned that the method you use to make estimated payments can significantly impact processing time. Electronic payments made through EFTPS (Electronic Federal Tax Payment System) seem to process more reliably than payments made through third-party processors or even the IRS Direct Pay system. For anyone making future estimated payments, I'd strongly recommend using EFTPS directly and keeping screenshot records of the confirmation page, not just the confirmation number. The screenshot shows the full transaction details that can be incredibly helpful if you need to dispute processing delays later. Also, for those currently dealing with this issue - when you call the IRS, ask specifically if your payment is in their "unpostable" queue. Sometimes payments get stuck there due to mismatched information (like slightly different name formatting or SSN entry errors) and require manual intervention to process. This is different from just being "slow to process" and needs a different type of resolution. The whole system is frustrating, but understanding these technical details can help you ask better questions and get more targeted help from IRS representatives.