IRS Erroneous Balance Due Notice

IRS Erroneous Balance Due Notice

One of the balance due notices the IRS sends delinquent taxpayers is a Notice CP14. CP14 notices inform you that you owe the IRS back taxes. Your CP14 specifies that you have to pay your tax debt within 21 days. Failure to pay the tax balance due within 60 days from your CP14 notice date may result in IRS collections.

In July 2022, several taxpayers mistakenly received a CP14 from the IRS even though their taxes were already paid. The IRS has since issued a statement acknowledging the CP14 error. This post focuses on erroneous CP14 notices and what you need to do if you receive one.

Who Received an Erroneous IRS Balance Due Notice?

The most affected group of people who receive incorrect IRS CP14 notices are spouses who filed a joint return and made a tax payment via their IRS online account. However, other taxpayers outside of this group can also receive the notices by mistake.

Why Did Some Married Couples/Joint Taxpayers Receive an Erroneous CP14 Notice?

As has been in the news, the IRS is facing a huge backlog of tax returns and payments. Many returns and payments, including ones submitted online, are taking the IRS much longer to process. Until the IRS processes your tax payment, your account will reflect a balance due even if you already paid your taxes in full.

In a statement, the IRS revealed that some payments made by spouses for 2021 tax returns were not correctly applied to joint accounts of married couples because the payments were posted before the joint return indicator was activated to identify the primary taxpayer.

Therefore, many taxpayers who e-filed a joint return and their spouse paid on that same day received an erroneous CP14 notice. These tax payments likely posted before the IRS system figured out it’s a joint return and who is the primary taxpayer. Simply put, the IRS didn’t know to apply spouses’ tax payments to joint returns.

What Do I Do If I Received a CP14 Notice by Mistake?

If you received an erroneous balance due notice from the IRS, you don’t need to panic. Take these recommended actions when your erroneous CP14 notice arrives in the mail:

  • First, don’t ignore the CP14. Review the notice and keep for your records.
  • Next, verify your taxes were paid. If you have a printout or screenshot that shows you paid in full, you don’t need to make another payment.
  • Then, create an online IRS account to monitor your tax payment status and confirm when it’s applied. As mentioned earlier, some tax return payments haven’t been processed yet due to IRS backlogs.
  • Last, if your payment isn’t applied to your tax account at least ten days before the 60-day deadline expires, send the IRS all documents that prove you made your tax payment in full.

How Can I Contact the IRS About an Erroneous CP14 Balance Due Notice?

Remember, you have 60 days from the date of your CP14 notice to respond to the IRS. You can contact the IRS by calling the number in your CP14. You’ll find the IRS phone number in the upper right-hand corner. Usually, it’s the IRS toll-free number 800-829-1040. However, when a specific IRS representative is handling your case, your CP14 provides a phone number for that employee or a case manager.

According to the Taxpayer Advocate Services (TAS), the best days to call the IRS are weekdays, specifically Wed – Fri. Before you call, have your CP14 notice in hand and any supporting documents readily available.

Help With Erroneous IRS Balance Due Notice

The IRS routinely issues several balance due notices, including CP14, CP501, CP503, and so on. Receiving an IRS balance due notice by mistake can be alarming when you paid your taxes.

Generally, it is easy to resolve these incorrect notices or letters with the IRS, and Wiztax can help you respond or contact an IRS representative on your behalf.

How Can Wiztax Help?

Call us today at (866) 568-4593 to learn more about how we can help. You can also start here to take our free online evaluation. We never charge for ‘investigations’ or consultations. We promise to save you thousands in fees.

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