IRS Notice CP-14

Even though most Californians have until October 16, 2023 to pay their taxes, if they already filed their tax return and owe tax, they may receive an IRS Notice CP-14. On June 7th, the IRS issued the following statement:

"The IRS reassures California taxpayers that they continue to have an automatic extension until later this year to file and pay their taxes for those covered by disaster declarations in the state. The current mailings being received by some taxpayers, the IRS Notice CP-14, are for taxpayers who have a balance due, and they are sent out as a legal requirement. While the notice received by taxpayers says they need to pay in 21 days, most California taxpayers have until later this year to pay under the disaster declaration. These letters include a special insert that notes the payment date listed in the letter does not apply to those covered by a disaster declaration, and the disaster dates remain in effect.

The IRS apologizes to taxpayers and tax professionals for any confusion as we continue to review the situation. Taxpayers receiving these letters do not need to call the IRS or their tax professional."

If you received one of these notices, please do not take any action. All of our California clients are covered by the disaster declaration. You will not accrue interest or penalties. We don't know yet if the IRS will automatically waive those fees or if you will have to request abatement. We will send additional instructions when we know more.

Our advice: Plan to pay your taxes a little ahead of October 16th. This way you are sure the payments have cleared before the extended deadline. Only pay the original balance due as shown on your tax return.

If you're unsure whether your IRS notice is related to this issue, please forward our office a copy. You can email it to rodrigo@petixbotte.com or upload it to your Smart Vault folder.