CP 14

[beckster2010]

Hello All!

Client just received CP14 notice for tax due; however, she doesn't owe and she has a refund coming to her.  How? Well, her return was filed before the powers that be decided to exclude up to $10,200 of unemployment income.  Our guidance is that IRS is recalculating and giving refunds over the summer and not to amend a return that is not eligible for other credits.  She doesn't fall into that loophole that will allow me to amend her 2020 return.

Any others ran into this conundrum yet? Any words of wisdom to calm the poor hearts of these ones receiving these notices?

Thanks!

 

[Lee B]

Once the IRS has finished recalculating returns and issuing refunds, I assume the IRS will provide guidance regarding those returns that fell through the cracks, which will probably be early fall.

All we call we can do is wait.

[Tax Prep by Deb]

I also have a client in the same situation.  For now all I could tell her was to go ahead and pay the small amount owed and hope IRS takes the payment into consideration when refunding.  My fear is it will take them way to long to straighten this out that she will keep getting letters and finally IRS helps themselves to her money.  All I can say is what a mess!

[beckster2010]

It's such a mess.  Her original return shows her owing about $900.  After the exclusion, they will owe her about a $100.

BTW...she tried calling and got the usual "high volume" message.

[Lee B]

All you can do is calmly explain the situation and tell her to be patient. Telling her it's a mess doesn't help.

[beckster2010]

6 minutes ago, cbslee said:

All you can do is calmly explain the situation and tell her to be patient. Telling her it's a mess doesn't help.

LOL!  I only use that terminology with you guys!

[JohnH]

She could go online and request a 120-day extension of time to pay without setting up a formal Installment Agreement.  That gives her 4 months of breathing room. 

Then if the adjustment has not been made by the end of that period, she could try calling and requesting an additional extension of 60 more days.   If she can't get through, then setting up a formal I/A with the minimum payment might an additional option.  For some people, the fee for setting up the I/A might be a small price to pay to retain access to her $900.  (She might even qualify for waiver of the fee, depending upon her income)

[beckster2010]

2 hours ago, JohnH said:

She could go online and request a 120-day extension of time to pay without setting up a formal Installment Agreement.  That gives her 4 months of breathing room. 

Then if the adjustment has not been made by the end of that period, she could try calling and requesting an additional extension of 60 more days.   If she can't get through, then setting up a formal I/A with the minimum payment might an additional option.  For some people, the fee for setting up the I/A might be a small price to pay to retain access to her $900.  (She might even qualify for waiver of the fee, depending upon her income)

Thanks John. We'll see if she gets her adjustment with the latest round of direct deposits that are supposed to go out beginning tomorrow.  I did have her set up her IRS account, so she can track any adjustments.  If nothing by next week, I'll have her request the 120 day extension.  Appreciate your help.

[JohnH]

Glad to help a little.  Hope this works out for her.