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IRS is Aware of Sending Some Erroneous CP14 Notices

TXCPA received this alert from an IRS senior stakeholder liaison.

Statement on balance due notices (CP-14)

The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, causing these taxpayers to receive erroneous balance due notices (CP14 notices) or notices showing the incorrect amount.

Who is affected:

Generally, these are payments made by the spouse (second taxpayer listed) on a married filed joint (MFJ) return submitted through their Online Account. Some other taxpayers may also be affected outside of this group. 

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. Taxpayers who paid only part of the tax reported due on their 2021 joint return should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives. The IRS indicates that taxpayers can ensure that their payment is on their account by checking Online Account under the Social Security number that made the payment. Any assessed penalties and interest should be automatically adjusted when the payment(s) are applied correctly.

Additional information for tax professionals

In general, when certain payments are processed, programming does not move the payment to the MFJ account when the payment is:

  • not electronic and is made by the secondary spouse,
  • electronic made by the secondary spouse and posts before the joint return indictor is present to identify the primary taxpayer, or
  • made by the secondary spouse using the Online Account (OLA) Make a Payment functionality.

This alert has been updated on the IRS’ website in the following places, IRS Statement on CP14s:

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