IRS Error Regarding CP14 Notices
TLDR: Balance due notices (CP14) have been incorrectly issued to some taxpayers who filed married filing jointly. The error occurs when the taxpayer listed as the spouse makes payments and the payments are not applied to the balance due, resulting in a notice. The IRS is reviewing these cases and no immediate action or phone call is needed.
Receiving a notice from the IRS can be scary, but it’s important not to panic. Any notice you receive should be reviewed for accuracy and every taxpayer has the right to appeal an IRS letter or notice.
About CP14 notices
CP14 notices are sent out to taxpayers who have a balance due for unpaid taxes. Typically, this process is automated, which can lead to erroneous notices as the IRS processes the current backlog of tax returns and mail. These notices request payment within 21 days and if it is not paid within 60 days, the IRS can proceed with collection activity.
IRS statement of balance due notices (CP14)
The IRS has released a statement notifying taxpayers that some CP14 notices may have been incorrectly issued. Taxpayers may have received this letter in error if a.) it’s a married filing joint tax return, b.) the taxpayer listed as the spouse made a payment, and c.) payments were submitted online or by check. Some taxpayers outside of these criteria may also be affected.
What to do if you received an erroneous notice
If the above applies to you and the balance was fully paid, the IRS says not to respond at this time as they work to resolve this issue. We recommend keeping any notices you receive from the IRS and having proof of payment, such as confirmation of payment on the IRS website or a bank statement.
Taxpayers who find the CP14 notice is correct and those who only paid part of the balance due should pay the remaining unpaid balance as soon as possible to limit penalties and interest. If you aren’t able to pay the remaining balance by the date of the notice, you may be able to set up a payment plan with the IRS.
Learn more about what to do if the IRS sends you a letter.
Need help with your taxes?
Our tax preparers at Northside Tax Service have years of experience with a variety of tax situations. If you need help filing your tax return, give us a call at (360) 922-0235. We’d be happy to help you understand your tax situation and claim the credits and deductions you deserve.
Disclaimer: This material is prepared for informational purposes only, and is not tax advice. Please speak with a tax professional or view the resources below to see how this information may apply to you.
