Erroneous Balance Due Notices Sent by IRS
The IRS admitted it sent incorrect Balance Due Notices (CP-14) to taxpayers filing jointly for the 2021 tax year as the IRS did not correctly apply payments made to the joint taxpayer accounts. The Balance Due notice is issued when a tax payment is paid under the Spouse’s Social Security Number in satisfaction of the balance due on their filed 2021 Form 1040.
The link below explains the cause of the notice issuance and, if the situation applies to you, directions as to the steps you can take to ensure no action is needed.
A few of our clients received these notices, and our firm prepared responses on their behalf. However, we are glad the IRS is finally admitting its mistake and will address this issue in their internal systems.
As a reminder, if you receive any notice from the IRS or any other government agency regarding taxes, please forward all pages (front and back) of the notice to us so we can review and determine the next steps.