IRS CP14 Notices sent in Error

[Lee B]

IRS Announcement dated June 12, 2024:

"The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return.

Who is affected: Taxpayers who paid electronically or by check with their 2023 tax return, may show their accounts as pending, although the IRS has received and processed payment through their banking institution. The notice may have been initiated before the payment was processed on the account, or the payment may have been processed but contained errors and requires additional handling to address the error before updating the tax account.

No immediate action or phone call needed: Taxpayers who receive a notice but paid the tax they owed in full and on time, electronically or by check, should not respond to the notice at this time. The IRS is researching the matter and will provide an update as soon as possible.

Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly by the IRS.

Taxpayers who paid only part of the tax reported due on their 2023 return should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives.

For affected taxpayers, the IRS apologizes for the inconvenience this delay in processing your payment "

I am sure we will have some panic phone calls from our clients.

[BrewOne]

unfortunately, they will probably have to call the IRS.  Client (who I did not have 2848 on) used direct pay on 4/11 received one (CP14).  Since it had been 8 weeks, I recommended she call: the number on the notice didn't even work, (800)829-1040 was overwhelmed but she kept trying at 7:00 a.m. and got through.

I don't know how this would happen with properly attributed direct pay but at least she had a confirmation number.  Those who mail in checks...kind of like Coach Bo Schembechler's comment on the forward pass:  Three things can happen and two of them are bad.

[Lee B]

I think calling the IRS about one of these notices right now would be an exercise in frustration.

Have your clients check to make sure their payments cleared their bank and let the IRS clean up this mess.

I see no need to do anything unless a second notice shows up.

[Catherine]

On 6/14/2024 at 6:03 PM, Lee B said:

I see no need to do anything unless a second notice shows up.

Except calm the client down repeatedly until they finally believe you, and subside.

[mcb39]

17 hours ago, Catherine said:

Except calm the client down repeatedly until they finally believe you, and subside.

The problem lies in trying to calm myself down.  The client paid electronic estimates.  The client thinks that I have a magic want.  The one and only time I finally did reach a person; they wouldn't talk to me.

[Lee B]

A similar problem has been happening in Oregon with April 15th extension payments not showing up on clients accounts when the final tax return is filed:

"Thank you for sharing this recent practitioner experience. I checked with Megan Denison, Administrator for Personal Tax and Compliance Division, about this example. I learned that this experience can happen when payments and notices cross in the mail, or if payments take a little longer to post to an account. This is not uncommon, and it was explained that the best solution is to check the Revenue Online (ROL) account if a person receives a letter, to see if the issue is cleared up. "

-Marjorie Taylor, Legislative Director

Oregon Department of Revenue