Many Taxpayers Receive Erroneous Balance Due Notices

Recently, the IRS announced that thousands of taxpayers have mistakenly received CP14 Balance Due notices, indicating that they owe an additional payment to the IRS. Additionally, taxpayers who paid their 2023 taxes electronically also reported that their accounts continue to say “pending” despite the fact that the agency received and processed their payments through their banks.

What is the CP14 Balance Due Notice? 

The IRS issues a number of different types of notices when a taxpayer is overdue on a payment, one of which is Notice CP14 (Notice of Tax Due and Demand for Payment). This notice asks affected taxpayers to make a full payment within three weeks and notifies them that if the balance isn’t paid within 60 days, then the agency can move forward with collection. Unfortunately, the IRS recently announced that thousands of taxpayers have mistakenly received a CP14 notice despite having paid their taxes in full.

Why are Taxpayers Receiving the CP14 Balance Due Notice? 

The IRS has stated that the erroneous notices may have been sent before the affected taxpayers’ payments were processed due to a correspondence backlog at the IRS. This has led to the late processing of many accounts that were already paid. Until the agency works through this backlog, many taxpayer accounts may still mistakenly reflect unpaid balances.

What Should I Do if I Received an Erroneous Balance Due Notice?

Fortunately, taxpayers who receive a CP14 balance due notice, but who paid the full amount of taxes that they owed (on time) either electronically or by check, do not need to respond to the notice. Furthermore, any penalties or interest that were assessed against a taxpayer in these cases will automatically be adjusted by the IRS. Taxpayers who paid part of their taxes on their 2023 returns, on the other hand, will need to:

• Pay the remaining amount that they owe;
• Follow the instructions on the notice to enter into an installment agreement; or
• Request additional collection alternatives from the IRS.

If you receive a CP14 notice by mistake, be sure to take the following steps:

• Read it and keep it in a secure place;
• Verify that your taxes were paid;
• Create an online account to monitor your payment; and
• Respond to the IRS if your payment hasn’t been applied to your account at least ten days before the 60 day deadline.

If, on the other hand, you discover that your CP14 notice is correct and you made a mistake when filing your taxes, be sure to pay your tax debt as soon as possible. Many taxpayers who cannot pay in full at once qualify for short term extensions and payment plans.

Call Experienced Tax Lawyer Ronald Cutler, P.A. for Help 

If you received a CP14 and believe that this was an error on the IRS’ part, please call CPA, former FBI Special agent, and experienced Florida and nationwide tax lawyer Ronald Cutler, P.A. for advice. You can set up a one-on-one consultation by calling our legal team at 386-490-9949 today.

Sources: 

irs.gov/newsroom/irs-statement-on-balance-due-notices-cp14

taxpayeradvocate.irs.gov/news/tax-tips/what-to-do-if-you-receive-an-irs-balance-due-notice-for-taxes-you-have-already-paid/2024/06/