It’s been over two months since this year’s tax filing deadline, which was also the deadline for paying any owed taxes to the IRS. However, some taxpayers who paid on time are now receiving notices from the agency indicating they still have a balance due.
“Each year, several million taxpayers extend their tax return, which is quite common,” said Mark Steber, chief tax information officer with Jackson Hewitt Tax Services. “But something less publicized is that around 10 million people do not extend and instead file late, accepting that they’ll just pay the penalties and interest.”
Steber explained, “If you owe more than 10% when you file your late or extended tax return, you’re likely to receive one of those pesky notices saying, ‘Whoa! Whoa! Whoa! You owe a little bit more,’ and each day it continues to grow.”
The IRS has acknowledged that thousands of taxpayers who owed and paid on time are receiving these “pesky little notices,” claiming they still have a balance due. In a statement, the agency said, “The IRS is aware that some taxpayers are receiving CP-14 notices indicating a balance due even though payments were made with their 2023 tax return.”
This issue appears to be a glitch. According to the IRS, “The notice may have been initiated before the payment was processed on the account.” Taxpayers who paid electronically or by check are most likely affected by this and may see their accounts as “pending, although the IRS has received and processed payment through their banking institution.”
As for next steps, the IRS advises, “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.”
If you owed and paid only part of what was due, you should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives.
The IRS has apologized for the inconvenience, stating, “The IRS apologizes for the inconvenience this delay in processing your payment has caused.”
