IRS Error

We are aware that some clients have received CP14 late notices from the IRS, despite having already paid their 2023 tax bill and having no outstanding amount due. The IRS notices mistakenly state that there is an outstanding balance. We have been in communication with the IRS, and they have assured us that the notices were issued in error. Once the IRS systems are updated, the accounts will reflect a $0 balance.

If you have already made your tax payment for 2023 and the payment has cleared your bank, please disregard this notice. If you have only partially paid your 2023 tax balance, please follow the instructions on the notice to pay the remaining amount, enter into an installment agreement, or request additional collection options.

There is currently no official IRS statement on the current situation. For reference, a similar issue occurred in 2022 for the 2021 tax year, as noted in a previous IRS communication on their website: https://www.irs.gov/newsroom/irs-statement-on-balance-due-notices-cp-14.

PA Error

Additionally, Pennsylvania taxpayers experienced a similar issue due to a software error. According to the PA Department of Revenue, their system threshold for sending a notice is typically set at $10. However, this parameter was missing for a few months this spring, resulting in clients receiving notices for very small amounts that were due or being refunded, primarily due to rounding issues. Thousands of notices from PA were sent out erroneously during this period, but the issue has since been corrected.

If you have questions about your particular situation, please contact your SEK Client Relationship Manager.