On June 12th, 2025, the IRS officially acknowledged processing delays that have caused some taxpayers to receive notices claiming a balance due—even when payments were made timely and electronically.
Why It’s Happening:
- Electronic payment backlog: Payments made via bank or IRS portal appear as “pending” in IRS systems even after the agency has received them.
- Automated notice triggers: Notices may be issued before payment records are fully updated—or may flag errors needing manual resolution.
Who’s Affected
- Anyone who paid electronically: Filers who paid via IRS Direct Pay, bank draft, or debit cards, but saw their account flagged with a notice.
- Typically catches those receiving CP14 (Balance Due, No Math Error) notices mistakenly indicating nonpayment
IRS Guidance for Taxpayers
- Do not respond immediately: If you paid fully and on time, the IRS says you can safely ignore the notice—no need to call or pay again.
- Monitor your account online: Use the IRS online account portal’s “Payment Activity” page to check for pending or processed transactions.
- Call only if needed: If by July 15 your payment still isn’t processed, you may contact the IRS using the phone number on the notice.
- Penalties and interest adjustments: Any late fees or interest added due to delay will be corrected automatically when processing finalizes.
Challenges Facing the IRS
This issue highlights broader operational challenges:
- Staffing shortages: Severe workforce cuts—26% since the last filing season—have hindered payment processing and customer support.
- System modernization needed: The lack of integrated electronic tools increases delays and errors.
- Ongoing funding debate: Cuts to modernization investments could prolong such issues into the next filing season.
While the IRS works through its backlog, most taxpayers will see these balance‑due notices resolved without taking action. Still, vigilance is key—monitor your status, follow guidance, and expect any fees to be corrected once payment is fully recorded. If delays persist past July 15, that’s the time to respond.
For more details on the statement provided by the IRS on June 12th, visit the their official website: IRS statement on delay in processing some electronic payments.