What Is IRS Notice CP23?
IRS Notice CP23 is sent when the IRS made changes to your tax return and needs to notify you of the adjustment. The notice explains what was changed and how it affected your tax account, which may result in a balance due, reduced refund, or account update.
CP23 is informational but important to review carefully.
What Does a CP23 Notice Mean?
A CP23 notice means the IRS adjusted your return based on its review of the information you filed or data it received from third parties. The IRS determined that certain items on your return did not match its records or required correction.
The notice outlines:
- What was changed
- Why the change was made
- How your tax balance or refund was affected
Why Did You Receive a CP23 Notice?
You may receive a CP23 notice if:
- Income, withholding, or credits did not match IRS records
- Required schedules or forms were missing or incomplete
- Mathematical or clerical issues were identified
- Prior credits or payments were applied differently
CP23 is commonly issued during routine return processing.
Is CP23 a Bill or an Audit Notice?
CP23 is not an audit notice, but it may show a balance due if the adjustment increased your tax liability.
If a balance is shown, it becomes payable by the date listed on the notice.
What Is the Deadline to Respond to a CP23 Notice?
If you agree with the changes, no response is usually required—payment should be made by the due date if a balance is shown.
If you disagree, you should respond by the date on the notice with an explanation and supporting documentation.
What Happens If You Ignore a CP23 Notice?
If CP23 is ignored:
- Any balance due may accrue penalties and interest
- The IRS may send follow-up balance-due notices
- Collection notices may eventually follow if unpaid
If the notice reduces your refund, the adjustment will stand unless disputed.
What Are Your Options After Receiving a CP23?
Your options include:
- Accepting the changes and paying any balance due
- Reviewing the explanation to confirm accuracy
- Disputing the adjustment with documentation
- Filing an amended return if additional corrections are needed
Which IRS Forms Are Related to a CP23 Notice?
Forms commonly associated with CP23 include:
- Form 1040 / 1040-SR – Individual income tax return
- Form 1040-X – Amended return, if you disagree with the changes
- Form 8862 – Credits after prior disallowance (in some cases)
What IRS Notices Are Related to CP23?
Notices commonly related to CP23 include:
- CP11 – Correction resulting in a balance due
- CP12 – Correction resulting in a refund
- CP21 – Account adjustment notice
- CP2000 – Proposed changes based on third-party data
When Should You Seek Help With a CP23 Notice?
You may want assistance if:
- You do not understand the adjustment
- The balance due is significant
- Multiple tax years or credits are involved
- You plan to dispute the IRS change
Summary
IRS Notice CP23 explains changes the IRS made to your tax return during processing. Reviewing the notice helps ensure the adjustments are correct and allows you to respond promptly if you disagree.
Scope Note
This page explains IRS Notice CP23 and general response options. It does not provide legal or tax advice.