Our firm is seeing quite a few notices from the IRS stemming from not correctly applying payments made under the spouse’s social security number. This is happening primarily for electronic payments made by taxpayers who file married filing joint returns. We are seeing this issue with extension payments, estimated tax payments and amounts due with the return if paid electronically.
If the IRS has received the taxpayer’s tax return but cannot apply the payment correctly or match up the payment with the return, they will send the taxpayer a CP-14 notice indicating unpaid balance due. A payment has been misapplied or “lost” can be corrected by calling the IRS or by writing a letter in response to any notices.
It is our firm’s suggestion that all payments be made under the primary taxpayer’s social security number even if the spouse is the person actually making the payment. The IRS should be able to match up payments made under either social but apparently that is not the case at this time.
Please contact our office at 919-571-7055 if you have any questions about this issue.