Bay Area residents with storm tax extensions confused as IRS mails letters demanding payment

SAN FRANCISCO (KGO) -- A very scary letter is landing in mailboxes around the Bay Area. It says the recipient owes the IRS and has to pay up, now.

It sure looks official and says taxes need to be paid within 21 days.

What happened to the extensions the Bay Area received because of the storms last year and early this year?

MORE: Here's what the tax deadline extension means for Californians

CPA Larry Pon knows all about this stuff and has our explanation: "So you filed your tax return and you've got to October 16 to pay. However, the IRS computer doesn't know that. So the IRS computer sees that you did file your tax return, 'You owe some money, and you got to pay within 21 days.'"

But do not worry, you still have the extension. Those that read all the way through the fine print eventually find a disclosure that says, basically, if you have an extension, "Never mind."

For more information -- and an apology for the confusion -- read the IRS's statement here.

Take a look at more stories and videos by Michael Finney and 7 On Your Side.

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