NCACPA's director of advocacy just posted this:
On Friday, June 24, NCACPA sent the following message to the senators and representatives of North Carolina's congressional delegation:
On behalf of the North Carolina Association of Certified Public Accountants, I am writing to alert you about a recent issue with the Internal Revenue Service that is affecting a significant number of taxpayers in North Carolina and around the nation.
Earlier this month, the IRS issued CP14 Notices to more than 9 million taxpayers (Background: IRC Section 6303 requires the issuance of a CP14 Notice if the IRS thinks you have an unpaid balance for the last tax year. The computer-generated notice gives the taxpayer 21 days to respond with payment of the balance due, after which the IRS can begin the process of collecting the tax by levy or by filing a notice of federal tax lien. The letter further warns that penalties and interest will accrue if payment is not made.).
Our concern stems from dozens of reports by NCACPA members whose clients received a CP14 Notice in error. In each case, clients have proof that their tax payment was processed as documented by cancelled checks and bank statements. In several instances, the taxpayers even have IRS acknowledgement of electronic payment.
The IRS’s Taxpayer Advocate Service (TAS) advises taxpayers who disagree with the notice to “Call the IRS at the toll-free number on the top right corner of your notice. Please have your paperwork (such as cancelled checks, amended return, etc.) ready when you call.”
Unfortunately, contacting the IRS by phone has become an exercise in frustration for most taxpayers and tax professionals. In its midyear Objectives Report to Congress issued just this week, the TAS reports that 90 percent of calls to the IRS this year are going unanswered. I’ve also received reports from CPAs that contacting the IRS on its Practitioner Priority Service hotline has become equally impossible in the last two weeks (most likely due to a high volume of calls related to erroneous CP14 Notices). This is particularly disappointing because the IRS agents who staff the PPS hotline have a reputation for providing excellent service to practitioners.
Responding in writing to an erroneous CP14 Notice may not be much better for affected taxpayers. As the TAS midyear report points out, the amount of time it takes for the IRS to process a taxpayer’s written response currently averages 251 days—more than triple the processing time from FY2019. I asked our local IRS Stakeholder Liaison for the best address for written correspondence and/or a fax number, but he has been unable to provide an answer.
NCACPA respectfully urges your office to contact the IRS about this issue and ask the agency:
What specific guidance can the IRS offer to taxpayers and tax practitioners to resolve these erroneous notices in a prompt and efficient manner?
What is causing the recent decline in service on the Practitioner Priority Service hotline, and what steps is the IRS taking to resolve the matter?
What is the IRS doing to ensure that further collection action is suspended for taxpayers who received an erroneous notice?
What factors contributed to the generation of these erroneous automated notices, and what is the IRS going to do to prevent it from happening again?
Thank you for your attention to this matter.
NCACPA and AICPA Advocacy staff are collaborating on follow-up work with members of the delegation.