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By Suzanne Blake
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Several taxpayers have reported anxiety after receiving erroneous letters from the Internal Revenue Service claiming they haven't paid their taxes by the federal deadline.
The IRS reportedly sent one Michigan senior a notice claiming they owed the federal government $6,000 in taxes despite already paying the bill back before the deadline, The Detroit Free Press reported.
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The situation has happened often enough that tax professionals are warning clients not to write another check if they already paid the IRS on time. Instead, they are telling residents to check their bank statements because the IRS is experiencing glitches causing the letters to be sent in error.
In a new alert today, the IRS acknowledged the erroneous CP14 notes going out to taxpayers.
"The IRS is aware that some taxpayers are receiving CP14 (Balance Due, No Math Error) notices indicating a balance due even though payments were made with their 2023 tax return," the agency said on its website.
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Both taxpayers who paid electronically or by check may have their accounts show as pending despite having their payments received and processed, the IRS said.
"No immediate action or phone call needed," the IRS went on to say in its alert. "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."
Any penalties or interest will be automatically adjusted when the payments are applied correctly, the IRS added.
Still, the incorrect letters can prove to be a major headache for many taxpayers who came to believe their payments didn't go through.
"It's annoying," George Smith, a CPA with Andrews Hooper Pavlik in Bloomfield Hills, told the local publication. "And it created anxiety for my clients."
Taxes were due on April 15, but even if you submitted your payments and forms before then, you could be at risk of receiving the IRS message in error.
Tax experts say you should wait six to eight weeks to see if your payment is correctly posted before contacting the IRS about the missed payment. At that point, you might have to show proof of payment to guarantee no penalties are inflicted on you.
"Incorrect notices of payments due to the IRS are certainly scary, but nothing new," Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. "Processing times can be delayed, as the IRS is saying they have been this year, and that leads to affected taxpayers receiving letters they owe on an amount they've already paid."
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If you find yourself in this situation, Beene said you should immediately reach out to the tax professional or tax service you used while filing.
"It's always good to have a 'cheerleader' in your corner that can follow up with the IRS if needed on the incorrect notice," Beene said. "Also, have patience. As much as you would like to have the issue solved immediately, it does take time."
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