Fernway DiarySM

Nov 15, 2021

]The IRS is not necessarily known for being ahead of the technology curve, but the agency recently added a feature to help taxpayers pay their account balances: QR codes.

What is a QR Code?

The “QR” stands for quick response, and they are a type of barcode consisting of a series of pixels in a square-shaped grid. The code can be easily read by your smartphone’s camera or another digital device to help you download an app, visit a web page, access Wi-Fi, or perform a wide range of other actions.

QR code technology is not new; it was invented in 1994 by the Japanese company Denso Wave, a Toyota subsidiary, to track vehicles and parts during the manufacturing process. Since then, they have been used to track product information in supply chains, in marketing and advertising campaigns, and most recently, provide touch-free access to restaurant menus during the COVID-19 pandemic.

Now, you might come across them on an IRS notice as well.

QR Codes on CP14 Notices

The IRS sends CP14 notices to taxpayers who owe money on unpaid taxes. For example, you may receive one if you filed a tax return but did not pay the tax you owe. The notice explains how much you owe (with a due date) and instructions for making a payment.

The CP14 also provides instructions for contacting the IRS if you disagree with the amount due or requesting a payment plan if you cannot pay the balance in full by the deadline.

If you receive a CP14 notice with a QR code, you can scan the code using your phone’s camera. Scanning the code will bring up a browser window and help you navigate to the IRS.gov website. Once there, you can access your account, make a payment, or set up an installment plan — all without calling the IRS or interacting with an IRS employee.

Using a QR Code to Pay Your Tax Bill

If you agree with the IRS notice, scanning the QR code gives you a convenient way to pay your bill. However, many taxpayers receive these computer-generated notices in error.

The IRS is working through an enormous backlog of paper returns and letters, and many taxpayers have received notices regarding past-due payments they have already made. If you mailed a check for your payment, there’s a real possibility that the IRS simply hasn’t processed your payment yet. If you disagree with the amount the IRS says you owe, the notice may be in error.

Either way, if you need help with a CP14 notice or are unsure of your current tax situation, please contact your US tax advisory team at youradvisor@fernwaysolutions.com or visit us at www.fernwaysolutions.com.

Disclaimer:
The above content is intended to support the marketing of professional services and should not be construed as written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular tax situation. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Fernway Solutions assumes no obligation to inform the reader of any such changes.