The IRS has begun sending CP14 Income Tax Notices to certain taxpayers reporting an income tax balance due plus interest and penalties for tax year 2021. If you receive one, do not panic. Many of these notices have been sent in error. The IRS is not correctly posting tax payments made to the taxpayer’s account. This includes payments paid online at as well as paper checks mailed to the IRS. The notices are erroneously reporting tax due which has already been paid by the taxpayer. Additionally, the notices are calculating interest and penalties beginning on 4/15/22 when the payment due date was 4/18/22. Apparently, the IRS forgot to update their computers with the actual tax due date.

The IRS has admitted that this is a systemwide issue and is currently investigating which taxpayers were impacted. At this point, our IRS Stakeholder Liaison recommends holding off on responding to the notices if you have already paid the tax due by 4/18/22. We anticipate that the IRS will correct the issue on its own and no action is necessary from the taxpayer at this time. 

If you would receive a second notice from the IRS, it will need to be addressed.  Please reach out to your KT advisor if you have any concerns.