Why Was I Sent a Letter from the IRS About a Missing Tax Payment?

It’s been just over one month from the extended July 15^th2020 tax deadline and it seems the next wave of tax-related stress is among us. Recently, the IRS sent letters to many Americans stating that they owe money on taxes, even though they already paid their owed taxes.

If this is you, take a deep breath and keep reading to understand what you should do next.

What Does the CP14 Letter Mean?

If you received a letter in the mail recently from the IRS stating that you owe money on your taxes, it probably has a “CP14” label in the upper right-hand corner. The CP14 notice basically states that you owe the IRS money, because you either missed a tax payment, or interest and penalties have accrued on unpaid taxes.

However, if you did pay your 2019 taxes on time, you’re not alone in receiving this type of letter. Many Americans who paid their taxes by the July 15^th deadline have received the CP14 notice in the mail, due to the reason that the IRS is simply behind on applying your payment to your account despite having received and cashed your payment.

What Do You Need to Do?

So, what should you do if you received this letter from the IRS? First, make sure that your payment truly did go through, by checking your bank statement to ensure the money was withdrawn from your account.

If, for some reason, your tax payment did not go through, then you have your answer. Contact the IRS right away or go to the IRS website and make your payment online either with your bank account or with a debit/credit card.

If the payment did go through, contact the IRS by calling your local office (in the early morning to avoid the busiest times), or simply do nothing right now and wait about a month to see if the issue is resolved by the IRS (it most likely will, since they will be receiving countless calls and emails from others who received the letter).

If you are receiving the letter because you did not make your tax payment, you should make your full payment amount as soon as possible. You also have the option to apply for a payment plan or submit an Offer in Compromise.

Contact a Professional CPA if You Have Any Questions

If you received the CP14 letter from the IRS and aren’t sure what you should do, contact the Paul Anderson CPA office and together we’ll get this situation sorted right away!