What are CP14 Notices?
A CP14 notice is a letter that you receive from the IRS that indicates you have a balance due. Lately, many of our clients have received these notices even though they do not have a balance. In this article, I've highlighted some of the reasons why this occurs and how you can resolve the issue.
Top reasons why people receive a CP14 Notice
- You mailed in your payment with your return or separate from your return, but you sent a paper check. The IRS is still very behind in processing anything paper.
- When you made your payment, either electronically online or via check, you included or indicated the spouse's Social Security number first instead of the primary taxpayers. The IRS software can only handle the primary taxpayers social first.
- The payment is sitting in an "unpostable" status. This is where the payments are received, the check is cashed, but it's not properly applied to your account or to your tax year. Now there's a somewhat easy way to fix this. Now I'm going to give you the five steps to do it.
How to resolve a CP14 Notice
- Don't panic! If you have already paid the tax due and it says you haven't. You don't owe the money on the notice, but we still need to address it.
- Gather your original tax return and the notice.
- Get a copy of the check (front and back) that you used to pay the balance due from your bank or get it from your online bank access. If you paid electronically you'll need a copy of your bank statement showing the payment was actually withdrawn.
- Find a nice place, sit down, get comfortable, and be prepared for about an hour or two of your life to be sitting on hold. The IRS phone lines are very backed up and as a result, you may get one of three things when you call in:
- you will get a notification that they can't take your call today
- you actually get through to a person
- you will get put on an extended hold of 20 to 30 minutes
- Call the IRS at 1-800-829-1040.
Pro Tips! If you try to call and receive an automatic message to call back tomorrow (due to staffing shortages), hang up and try again. It may take about 30 minutes, but you'll eventually get through to hold. Once you are on hold, you should wait until you speak with a live agent. 7:00 AM seems to be the best time to call.
What if the IRS Agent still says I owe?
If you reach an agent who insists that you have a payment due even though you've already paid, thank them for their time, hang up, and call back. Just because an agent says you owe something does not mean you owe it.
Can my CPA handle this notice for me?
Yes, you can also work with your CPA on this matter. They will probably have direct line access to the IRS, but as a warning, it's also taking them about 90 minutes to get through to a live person sometimes. This is not a quick and easy process, unfortunately.
Why is this occurring?
The IRS continues to struggle to catch up due to budget constraints, employee retention, and the 2020 COVID shutdown. In discussions with agents, they are hopeful that they will be caught up by the end of 2022 or possibly 2023. This is not a problem isolated to the IRS either. It can be experienced with state-level taxes too. States have really slimmed down staffing call centers and sometimes only allow access to those individuals through online/e-mail-type programs. The IRS Statement on balance due notices (CP-14) provides more information on this topic.
Recommendation
If you have a payment due to the IRS, we strongly recommend making it electronically. You can make that payment via https://www.irs.gov/payments/direct-pay.
For questions or requests for assistance with notices, please complete the form below.
