IRS News: CP14 (Balance Due, No Math Error) notices sent in error

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.

Who is affected: Taxpayers who paid electronically or by check with their 2023 tax return, may show their accounts as pending, although the IRS has received and processed payment through their banking institution. The notice may have been initiated before the payment was processed on the account, or the payment may have been processed but contained errors and requires additional handling to address the error before updating the tax account.

No immediate action or phone call needed: 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.

Note that any assessed penalties and interest will be automatically adjusted when the payment(s) are applied correctly by the IRS.

Taxpayers who paid only part of the tax reported due on their 2023 return should pay the remaining balance or follow instructions on the notice to enter into an installment agreement or request additional collection alternatives.

For affected taxpayers, the IRS apologizes for the inconvenience this delay in processing your payment has caused.

Read the official IRS Statement here: IRS Statement on balance due notices (CP14)

IRS Reminder: June 17 estimated tax payment deadline fast approaching

The Internal Revenue Service today reminds those who make estimated tax payments such as self-employed individuals, retirees, investors, businesses, corporations and others that the payment for the second quarter of 2024 is due Monday, June 17.

Who needs to pay estimated tax?

Taxpayers including sole proprietors, partners and S corporation shareholders must make estimated tax payments if they expect to have a tax liability of $1,000 or more when they file their return. 

The IRS Interactive Tax Assistant is an online tool that taxpayers can use to see if they are required to make estimated tax payments. Taxpayers can also see the worksheet in Form 1040-ES, Estimated Tax forIndividuals, for more information about who must pay estimated tax. 

Corporations that expect to owe tax of $500 or more, generally must make estimated tax payments. For more information, corporations can see Publication542, Corporations. 

State News: Alabama MeF Acknowledgement Delay

Please review the below message from the Alabama Department of Revenue Services.

We are aware of issues with processing returns/acknowledgments.  Our developers are working diligently to resolve the issue as soon as possible. We apologize for any inconvenience. 

CP2100 and CP2100A notices - Payments subject to backup withholding

When businesses and other payers file information returns with data that doesn't match IRS records, IRS sends a CP2100 or CP2100A notice to them. The notices tell payers that their information returns have a missing or incorrect Taxpayer Identification Number (TIN), name or both. 

Each notice has a list of payees with the issues. Payers need to compare the listing with their records and correct or update their records, if necessary. 

Payments subject to backup withholding 

CP2100 and CP2100A notices also tell payers that they may be required to backup withhold tax payments. Payments may be subject to backup withholding if: 

• The payee doesn’t: 
• give their TIN to the payer in the required manner 
• certify that they aren't subject to backup withholding for underreporting interest and dividends 
• The IRS tells the payer 
• the payee gave an incorrect TIN and didn’t certify their TIN as required 
• they must begin backup withholding because the payee didn't report all their interest and dividends on their tax return 

Payers are responsible for any amount they fail to backup withhold and the penalties that may apply.

More information: 

Publication 1281, Backup Withholding on Missing and Incorrect Name/TINs (PDF)

State News: Connecticut MeF Acknowledgement Delay

Please review the below information from the Connecticut Department of Revenue Services.

Connecticut is seeing significant delays in our MeF acknowledgments going out.  We are working to resolve the issue with the slow response time.  

Tax Tip 2024-35: Debunking common myths about federal tax refunds

 Debunking common myths about federal tax refunds

Once people complete and file their tax return, many of them eagerly await any refund they may be owed. Knowing fact from fiction can help manage expectations as they wait for their money.

Myth: Calling the IRS, a tax software provider or a tax professional will provide a more accurate refund date.

Fact: The best way to check the status of a refund is through the Where's My Refund? tool or the IRS2Go app.

Taxpayers can also call the automated refund hotline at 800-829-1954 to get their refund status. This hotline has the same information about current tax year refunds as Where's My Refund? There is no need to call the IRS unless Where's My Refund? says to do so.

Myth: The Where's My Refund? tool must be wrong if it hasn’t updated yet.

Fact: Where’s My Refund has the most current information about refund status. It is updated once a day, usually overnight. Even though the IRS issues most refunds within 21 days, it's possible a refund may take longer. If the IRS needs more information to process a tax return, the agency will contact the taxpayer by mail. Taxpayers should also consider the time it takes for banks to post the refund to the taxpayer's account. People waiting for a refund in the mail should allow extra time.

Myth: The Where's My Refund? tool must be wrong because the refund amount is less than expected.

Fact: There are several factors that could cause a tax refund to be less than expected. The IRS will mail the taxpayer a letter of explanation if it adjusts a refund. Some taxpayers may also receive a letter from the Department of Treasury's Bureau of the Fiscal Service if their refund was reduced to offset certain financial obligations. Before calling, taxpayers should wait for the letter to understand why the change occurred.

Myth: Getting a refund this year means there's no need to adjust withholding for tax year 2024.

Fact: To avoid a surprise next year, taxpayers should make changes now to their tax withholding. The Tax Withholding Estimator tool can help taxpayers determine if their employer is withholding the right amount. Taxpayers can use the results from the Tax Withholding Estimator to complete a new Form W-4, Employee's Withholding Certificate and submit it to their employer as soon as possible. Withholding takes place throughout the year, so it's better to take this step as soon as possible.

REMINDER: The 2023 Filing Deadline is here - Monday, April 15th, Midnight; Support Hours

The 2023 Tax filing season deadline is here:  

Monday, April 15th, Midnight is the filing deadline.  Transmit returns by 10:00 PM EST to ensure timely filing.

Things to Know:

Support Hours 

Reminder, the Refunds Today Support team will be available the following days/hours thru the April 15th Deadline:

• Monday, April 8th:  8am - 7pm ET
• Tuesday, April 9th:  8am - 7pm ET
• Wednesday April 10th:  8am - 7pm ET
• Thursday April 11th:  8am - 7pm ET
• Friday, April 12th:  8am - 7pm ET
• Saturday, April 13th:  10am - 6pm ET
• Sunday, April 14th:  10am - 6pm ET
• Monday April 15th:  8am - Midnight ET

Processing Times

Please remember, the processing volume at the IRS will increase daily as the deadline approaches. Both return volume and return size will affect processing time. While you are accustomed to receiving your Federal acknowledgements within a one hour time-frame, that turnaround time will increase as the deadline approaches. You may see your acknowledgements take from 2 to 4 hours, and possibly longer.

This is why we suggest that you send returns periodically throughout the day. This will help spread out the volume and also help eliminate some of the 'deadline rush' which also impacts IRS processing.