January 1, IRS Apologizes: Taxpayers Hit with Unjust Fines in Shocking Error

Nothing is quite as alarming as receiving a letter from the Internal Revenue Service (IRS) in your mailbox. These notices typically inform taxpayers of changes, corrections, or delays in their returns.

Recently, the IRS has been issuing numerous CP14 notices. These alert individuals of a balance due, even though they paid their taxes on time.

Taxpayers in Pennsylvania have received these CP14 forms. They claim that they owe thousands of dollars to the IRS by June 24, as well as penalties and interest for failing to meet the April 19 deadline.

But the twist? These taxpayers did pay their taxes.

The IRS has recognized its mistake and apologized to law-abiding taxpayers. They said, “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.”

This issue has affected taxpayers who paid electronically or by mail via a physical check. They might see their balance as pending even though the IRS received and processed their 2023 tax return.

The IRS explained that the notice may have been initiated before the payment was processed on the account. Or, there may have been errors in the payment that require additional handling.

If you received a CP14 form but paid your taxes in full and on time, the IRS advises you to disregard the notice. However, if you didn’t pay your 2023 taxes in full, you should follow the notice’s instructions to ensure your account is up-to-date.

The IRS encourages taxpayers to create or log into their IRS account to verify their 2023 tax return status. “Taxpayers can ensure that their payment is on their account by checking Online Account under the SSN that made the payment. Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly by the IRS,” the agency said.

While the IRS is currently researching the matter, they will provide an update as soon as possible.

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