Optima Tax Relief Explains IRS Notice CP14s Received by Californians

The Internal Revenue Service (IRS) recently issued a statement regarding the mailing of balance due notices, formally known as IRS Notice CP14, to taxpayers in California who were affected by natural disasters in 2023. Optima Tax Relief explains the misunderstanding and how to proceed if you received a CP14.  

IRS Notice CP14 is a formal communication sent to taxpayers to inform them of an outstanding balance on their federal tax account. It serves as a bill for unpaid taxes and includes details such as the amount owed, accrued interest, and any penalties incurred. Normally, receiving this notice does not come as a shock to most taxpayers. However, many Californians were shocked to see that they received this letter demanding payment within 21 days, even though they were given previous permission from the IRS to file and pay their taxes by October 16, 2023. Their extended deadline came after many Californians were victims of winter storms, heavy winds, flooding, landslides, and mudslides.  

Typically, when the Federal Emergency Management Agency (FEMA) declares a disaster, anyone affected by the disaster will qualify for some type of tax relief. Californian taxpayers affected by the disaster have until the October extension deadline to file their individual and business tax returns. This deadline also applies to those who need to make quarterly estimated tax payments that were due on January 17, 2023, March 15, 2023, April 18, 2023, June 15, 2023, and September 15, 2023. In addition, any business with tax returns usually due on March 15th and April 18th have until the new deadline to file. Finally, all pass-through entities that had tax payments due on March 15th and June 15th can make these payments by October 16, 2023.  

Although it seems counterintuitive to ignore the warning to pay message in IRS Notice CP14, affected Californians should be sure to read all documents and messaging in their notices. Each notice should include a separate insert with special messaging for those affected by disaster, including to keep the disaster deadlines in place. California taxpayers should note that calling the IRS about the CP14 notice can result in long wait times on the phone. The IRS has issued public statements regarding the misunderstanding and also clarification for anyone who is still confused. These messages can be found on the IRS Newsroom webpage. Taxpayers can also go to the IRS website to find the specific counties affected by disaster that qualify for tax relief and what kind.