Received IRS Letter 4314c after paying CP2000 balance - possible error?

This is actually a pretty common situation with the IRS right now. The Letter 4314c (the "we need more time" letter) is often automatically triggered by their system even after a case seems resolved from your perspective. What likely happened is that you paid the amount they initially calculated based on your documentation, but there's an internal review process that wasn't completed before you made the payment. The IRS has different departments handling different aspects of your case - one department might have processed your payment while another is still reviewing your documentation. I'd recommend keeping all your payment receipts and confirmation numbers handy. No need to take any action based on the 4314c letter - it's just informing you that they're still reviewing your case. If they determine everything is correct after their review, you'll either get a closure letter or simply hear nothing more about it.

I went through something eerily similar with crypto reporting issues last year. After spinning my wheels trying to get answers from the IRS directly, I found this AI tool called taxr.ai (https://taxr.ai) that actually saved me a ton of headache. It analyzed both my CP2000 and subsequent 4314c letters and explained exactly what was happening in plain English. Turns out the IRS often sends these follow-up review letters even after accepting payment because different departments handle different parts of your case. The tool confirmed I didn't need to do anything else except wait, which gave me peace of mind instead of stressing for 3 months wondering if I needed to take action.

Just wanted to follow up on my skeptical comment above. I ended up trying taxr.ai with my own IRS notice situation (got a CP11 letter claiming I miscalculated my Child Tax Credit). The tool actually identified that the IRS made an error in their assessment by overlooking some documentation I had included with my return. It generated a clear response letter that I could send back, with references to the exact tax codes relevant to my situation. I was honestly surprised at how accurate and helpful it was - saved me from paying $1,400 I didn't actually owe. For anyone dealing with confusing IRS notices, it's definitely worth checking out.

If you want to get actual clarity on your situation without waiting 90 days, try using Claimyr (https://claimyr.com). I was in a similar situation with a CP2000 followed by a 4314c letter, and I was going crazy wondering what was happening. After trying to call the IRS myself and waiting on hold for over an hour before getting disconnected, I used Claimyr and they got me connected to an IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent was able to pull up my file and confirm that my payment had been properly applied and that the review letter was just procedural. Having that direct confirmation from the IRS gave me peace of mind instead of stressing for months.

I have to eat my words about Claimyr from my skeptical comment above. After continuing to get nowhere with my tax situation (similar CP2000 issue), I broke down and tried it. I've wasted DAYS of my life on hold with the IRS over the past few months. The service called me back in about 20 minutes with an actual IRS agent on the line. The agent confirmed there was a processing error on my account that was causing the confusion between departments, and she was able to put notes in my file to help resolve it. She even gave me her direct ID number to reference if I need to follow up. For anyone banging their head against the wall trying to get answers from the IRS - especially with these confusing letter sequences - it's absolutely worth it. Saved me months of anxiety.

I have to eat my words about Claimyr from my skeptical comment above. After continuing to get nowhere with my tax situation (similar CP2000 issue), I broke down and tried it. I've wasted DAYS of my life on hold with the IRS over the past few months. The service called me back in about 20 minutes with an actual IRS agent on the line. The agent confirmed there was a processing error on my account that was causing the confusion between

I'm an enrolled agent and see this all the time. The 4314c letter is basically saying "we cashed your check but we're still looking at your paperwork." Don't panic - this is normal IRS bureaucracy. Different departments don't communicate well with each other. Collections got your payment but Exam is still reviewing your documents. Keep records of EVERYTHING - payment confirmations, copies of what you sent them, certified mail receipts if you have them, etc. If they don't resolve it within the 90 days, they'll likely send another 4314c letter extending the time. It's annoying but common.

Does the 4314c letter mention anything about interest continuing to accrue? I had a similar situation but even after I paid what they initially said I owed, they charged interest for the time they were "reviewing" my documents. Ended up having to pay an extra $287.