IRS Form CP-14 and the 30 Million Returns Destroyed

The Veracity Report

This article explains how the revelation of the 30 million destroyed IRS documents might affect the agency's sending out of these documents

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Author’s Note

This article was written by the accredited and degreed journalist, Veteran Investigative Reporter Kurt Dillon, and is comprised of information gleaned from interviews with IRS employees, Jackson Hewitt Tax Service, press releases from CBS News, and the website of the Internal Revenue Service at IRS.gov.

According to a press release by the IRS on their website, the agency recently began sending millions of form letters to taxpayers it believes have underpaid their taxes in years past. If you, or anyone you know, are among those who receive one f these letters — referred to as a CP14 — it’s crucial that you don’t ignore it. If you do, you run the risk of subjecting yourself to steep penalties and interest, up to and including imprisonment if the dollar amount of the debt is high enough. That’s information from Jackson Hewitt's chief tax information officer, Mark Steber.

In recent years, due to COVID-19 restrictions, the IRS has suspended the practice of sending out CP14s, as well as many other types of form letters. In February, of 2020, the agency announced that it would cease sending various types of letters, however, in March, it announced that it will recommence sending the CP14s.

What causes you to get an IRS CP14?

As explained in greater detail in our article: 30 Million Documents Destroyed By The IRS

the IRS has a computer program called the Automated Underreporter Program (AUP) that compares our tax returns with the information they receive from third-party creditors that have dealings with us (banks, credit card companies, insurance companies, etc...).

When that system identifies an inconsistency between our prepared tax returns and the information they receive from our third-party creditors, it generates a flag that prevents our returns from being processed electronically, and requires a human evaluation, clarification, and override before the return can be completely processed. A Service-Wide Strategy Is Needed to Address Challenges Limiting Growth in Business Tax Return Electronic Filing

However, during our investigation of this matter, we uncovered the investigative report from the Treasury Inspector General for Tax Administration (TIGTA) which initially discovered the destruction of the 30 million tax documents and made that information public knowledge. That report, entitled: Effects of the COVID-19 Pandemic on Business Tax Return Processing Operations, explains that the destroyed documents were all small business documents and that no personal tax filing documents were destroyed during the impromptu purge of backlogged documents.

Also of importance, is the need to mention that the documents that were destroyed were not tax refund documents prepared by taxpayer businesses, but were the documents received by the IRS by the third-party creditors mentioned earlier. Those documents, which they refer to as 'information returns', were all that were destroyed according to the report and that is what has also been confirmed by sources within the IRS.

Because of this, we can infer that the destruction of those documents will not in any way impact the refunds or returns of individual taxpayers. As such, if you happen to receive an IRS Form CP14, you would be well-advised not to ignore it.

There are more specific suggestions you might want to consider in our article: The IRS - CP14, Don't Ignore It, which has been viewed more than 69,000 times.

Reported by Investigative Reporter Kurt Dillon - Because the Truth Matters!

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