On Wednesday, July 27th, the Internal Revenue Service acknowledged that some tax payments made for 2021 tax returns had not been correctly applied to joint taxpayer’s accounts, and these taxpayers were receiving erroneous balance due notices (CP-14 notices), or notices showing the incorrect amount.
Generally, the misapplied payments were made by the spouse (second taxpayer listed) on a jointly filed return. Most of the time, the misapplied payments were made using an electronic payment method.
The IRS has advised that taxpayers do not need to take immediate action to respond to the incorrect notice. In a statement, the IRS said “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.