Received CP23 notice from IRS claiming I owe money but I already paid my estimated taxes

This is unfortunately becoming more common with the IRS processing backlog. A CP23 notice indicates that the IRS made changes to your return because they believe you didn't report all your income or claimed credits/deductions you weren't eligible for. In your case, it sounds like they haven't properly credited your estimated tax payment. The good news is that you've already called and they've confirmed they have record of your payment. Make sure to keep all documentation of your payment (canceled check, bank statement, confirmation number) and the details from your calls (date, time, representative ID if possible). While the IRS says processing can take up to 12 weeks, they're currently experiencing significant delays. Since you're already beyond that timeframe, I'd recommend calling again and asking for a payment trace. Also request that they put a hold on any collection activities related to this notice since you've already paid.

I went through something similar last year with my estimated tax payments. The IRS system is incredibly backlogged right now. What helped me was using https://taxr.ai to get my documentation in order. It analyzed my payment receipts, CP23 notice, and tax transcript to pinpoint exactly where the disconnect was happening. The site helped me format a proper response letter with all the necessary documentation attached, and I uploaded the response through their system. It saved me countless hours of trying to get through to the IRS by phone. Within about 3 weeks, they updated my account to show the payment had been applied correctly and canceled the incorrect assessment.

I just wanted to follow up - I tried taxr.ai after asking about it here and it was super helpful! I was struggling with proving I'd already paid what the IRS claimed I owed on my CP2000 notice. The system helped me organize my bank statements, confirmation numbers, and previous tax documentation. The best part was that it showed me exactly how to format my response letter and what specific IRS regulations to cite. I submitted everything last month and just got confirmation yesterday that my case was resolved in my favor! They acknowledged my payment and canceled the additional assessment. Definitely worth checking out if you're still dealing with your CP23 issues.

If you're still having trouble getting through to someone at the IRS who can actually help, you might want to try Claimyr (https://claimyr.com). I was in a similar situation with a payment that wasn't showing up for over 4 months, and I wasted days trying to reach someone on the phone. Claimyr basically holds your place in the IRS phone queue and calls you when they get an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical, but I was desperate after waiting on hold for 3+ hours multiple times only to get disconnected. Within about 40 minutes, I was connected with an IRS agent who could actually access my account history and see both the payment and the notice. They initiated a payment trace and put a hold on collections until it was resolved.

I have to eat crow on this one. After expressing skepticism about Claimyr, I decided to try it myself since I've been dealing with a similar issue for months. I had a payment that wasn't being properly applied to my account despite sending in the check over 15 weeks ago. I was connected to an IRS agent in about 55 minutes - which is miraculous compared to my previous attempts. The agent was able to locate my payment in their system and explained it was stuck in a processing queue. They initiated a trace and manually applied the payment to my account while I was on the phone. The status in my online account updated about 3 days later showing the payment was applied and the incorrect balance was removed. I've been trying to resolve this for months with no success, so I'm genuinely shocked it worked.

Make sure you respond to the CP23 notice even while you're sorting this out! You generally have 60 days to respond, and if you don't, they might start collection procedures regardless of your calls. Send a letter explaining that you've already paid, include proof of payment, and reference your previous calls with the dates you spoke to representatives. I'd also suggest checking your tax transcript online through the IRS website rather than just the account balance. Sometimes payments show up there before they're reflected in your account balance.

Quick question - did you pay electronically or by check? If by check, has it cleared your bank? I had a similar issue last year and it turned out my check was received but sitting in a backlog of unprocessed mail at an IRS facility.

I'm dealing with something very similar right now! I made my estimated tax payment in January via EFTPS (Electronic Federal Tax Payment System), and while the money was withdrawn from my account immediately, it still doesn't show up anywhere in my IRS online account or transcripts. What's been helpful for me is keeping a detailed log of every interaction - dates, times, representative names/ID numbers when possible, and exactly what they told me. I've also taken screenshots of my bank statements showing the payment was processed and withdrawn. One thing I learned from a tax professional is that you can request a "payment posting inquiry" which is different from a payment trace. This specifically investigates why a confirmed payment isn't showing up in their system. It might be worth asking for this specifically when you call back. Also, definitely respond to that CP23 notice in writing within the 60-day window, even if you're still working on resolving it by phone. Include copies of your payment proof and reference your previous calls. This creates a paper trail that protects you if things escalate.

I've been following this thread closely because I'm dealing with a very similar situation. The IRS processing delays are absolutely ridiculous right now - it's like they're operating with a skeleton crew while drowning in paperwork. One thing that hasn't been mentioned yet is that you might want to contact the Taxpayer Advocate Service (TAS) if this drags on much longer. They're an independent organization within the IRS that helps taxpayers resolve problems when normal channels aren't working. Since you've already been waiting 13-14 weeks for a payment to process (well beyond their stated 12-week timeframe), and you're now receiving incorrect notices, this could qualify as a "significant hardship." You can reach them at 1-877-777-4778 or submit Form 911. They have more authority to cut through the bureaucratic mess and actually get things moving. I had to use them last year for a similar issue and they were able to resolve in about 3 weeks what the regular IRS couldn't fix in 6 months. The key is documenting everything - which it sounds like you're already doing. Keep records of all your calls, the CP23 notice, proof of payment, and any written correspondence. TAS will want to see that you've made reasonable attempts to resolve this through normal channels first. Hang in there - this is unfortunately becoming the norm rather than the exception with IRS processing right now.

I'm going through almost the exact same situation right now! Made my quarterly payment back in January and it's been radio silence ever since. The IRS phone reps keep telling me "it's in the system" but nothing shows up online or on my transcripts. What's really concerning me after reading through this thread is that even when people get through to agents who can "see" the payment, it's still taking months to actually process and apply to accounts. I'm worried I'm going to get hit with a similar notice soon. The advice about the Taxpayer Advocate Service is gold - I had no idea that was even an option. Definitely going to keep that in my back pocket if this drags on much longer. The 877-777-4778 number and Form 911 could be a lifesaver. Has anyone tried making their response to these notices via certified mail? I'm wondering if that helps create a stronger paper trail or if regular mail is sufficient for the 60-day response window.