IRS Reassures Taxpayers Regarding Automatic Extension Disaster Relief in Light of Recent Balance Due Notices

June 13, 2023

The IRS has granted an automatic extension for filing and paying taxes to individuals affected by disaster declarations in California, as well as many other states. To read more about relief provided to taxpayers in California see our article here and for more information about disaster relief across other states, see our article here.

Some taxpayers in California have recently received IRS Notice CP-14 (Balance Due Notices), which typically indicates a balance due and sets a payment deadline of 21 days. We understand that these recent IRS notices has been causing confusion as to when payments are due and whether taxpayers are still eligible for extended due date relief. The IRS has reassured taxpayers covered by disaster declarations that they continue to have an automatic extension for both filing their tax returns and making their tax payments. Taxpayers covered by a disaster declaration should disregard the payment due date mentioned in these letters. The disaster dates remain in effect, and affected taxpayers have until a later date this year to make their payments.

In an attempt to avoid confusion, the IRS has included a special insert with the Notice CP-14 letters received by California taxpayers. This insert explicitly states that the payment date specified in the notice does not apply to individuals covered by a disaster declaration. I.e. only those who are not covered by disaster relief are bound by the 21-day payment deadline stated in the notice.

If you receive IRS Notice CP-14 and are eligible for automatic extension due to disaster relief there is no need to contact the IRS or your tax professional. However if you have any questions or concerns, feel free to reach out to us. We are here to provide guidance and support.

IRS Notices Not to Ignore

Though taxpayers can ignore IRS Notice CP-14 (Balance Due Notices) which are sent out as a legal formality, taxpayers should not ignore IRS late-filing or late-payment penalty notices that have an original or extended filing, payment, or deposit due date that falls within the postponed period. If a taxpayer receives either of these types of notices, either the taxpayer or their tax professional should call the number on the notice and explain that the taxpayer qualifies for disaster postponement relief.

Gatto, Pope & Walwick, LLP
Certified Public Accountants