The IRS says many people still owe taxes and most of the residents are confused about the “balance due” notices that were sent by the IRS despite having an extension due to the state’s disaster declaration.
The “Balance Due” Notices
If you are one of the Californian residents who have not paid taxes will receive a notice requiring you to settle it within 21 days. However, ABC7 news reported that Californians do not need to worry if they have an address covered by the disaster declaration, which is almost everyone in the state.
Moreover, IRS guarantees California taxpayers that they will continue to maintain an automatic extension until later this year to file and settle the taxes for those covered by disaster declarations in California. The recent email that was obtained by some taxpayers, the IRS Notice CP14, is for taxpayers who have a balance due, and they are sent out as a legal requirement.
While the notice obtained by taxpayers states they need to settle in 21 days, most California taxpayers have until later this year to pay under the disaster declaration. These letters include a special insert that remarks the payment date listed in the letter does not apply to those protected by a disaster declaration, and the disaster dates remain in effect.
The IRS reassures Californians they do not have to pay until October 16. The agency says the notices were sent automatically.
The IRS apologizes to taxpayers and tax professionals for any disorder that causes confusion to most taxpayers in Califonia.
The IRS continues to review the situation and those taxpayers receiving these letters do not need to contact the IRS or their tax professional.