IRS Notice CP14 Explained
If you have received IRS Notice CP14 in the mail, it is important that you take action, as you may owe money to the IRS.
TABLE OF CONTENTS
- A CP14 Notice from the IRS is a letter informing the taxpayer that they owe money for unpaid taxes. The individual may also owe money for the interest, fees, and penalties accrued in response to the unpaid tax debt.
- Taxpayers can respond to a CP14 Notice by paying their tax liability in full, disputing the notice, or requesting a tax relief option like a temporary delay of collection, an offer in compromise, or an installment agreement.
- Tax payments mentioned on IRS Notice CP14 are due within 21 days of the date at the top of the page.
What Is A CP14 Notice?
A CP14 Notice from the IRS is a letter informing the taxpayer that they owe money for unpaid taxes. In addition, the individual may owe money for the interest, fees, and penalties accrued in response to the unpaid tax debt.
Tax Debts Included On CP14 Notices
- Tax you owed
- Payments and credits
- Failure-to-file penalty
- Failure-to-pay penalty
- Interest charges
- Failure-to-pay estimated tax penalty
What To Do When You Receive IRS Notice CP14
Here is exactly what to do if you receive IRS Notice CP14 in the mail:
Read your CP14 notice carefully.
The first step to take when you receive an IRS notice in the mail is to read it carefully to learn the details of your situation. IRS notices will contain all of the information required for the taxpayer to understand the purpose of the notice, what action is required, and their options for resolving the tax issue. A CP14 notice will inform you how much money you owe, the due date for submitting your payment, and your options for paying.
Choose Your Tax Resolution Option.
After you have reviewed your CP14 notice, you can choose one of three options for how to move forward and resolve your tax problem. The route you choose to resolve the balance will depend on your confirmation that the debt is correct and your ability to pay the debt.
Those choices include:
- Paying your tax liability in full.
- Requesting tax relief.
- Appeal your IRS notice.
Below we will explore the details of these three options for resolving tax problems related to CP14.
How To Respond To IRS Notice CP14
Submit your tax payment.
The most efficient step taxpayers can take when they receive IRS Notice CP14 is to pay their tax bill in full by the due date on the notice.
There are several methods taxpayers can use to pay their tax balance, including:
- Wiring a payment directly from their bank account
- Submitting a deposit using a credit or debit card
- Mailing a physical check or money order
Request IRS Tax Relief
If you cannot afford to pay your full tax balance, the IRS offers tax relief options to qualifying taxpayers that help them pay off their tax bill without causing additional financial hardship. The three main types of tax relief options that can help you pay off your tax liability are currently non-collectible status, offers in compromise, and installment agreements.
The IRS may temporarily delay the collection process and register your accounts as currently non-collectible if, upon investigating your financial situation, they determine you cannot pay any of your tax debt. There are still requirements for the taxpayer to pay the funds owed once their financial condition is improved.
Offer in Compromise
An offer in compromise is a form of tax relief in which the IRS agrees to settle the tax debt for less than what was initially owed. The settled upon payment amount for an offer in compromise will be the most the IRS considers the taxpayer can reasonably
Installment agreements allow taxpayers to pay their tax balance through monthly payments. This payment plan option is helpful in tax cases where people can only manage small payments each month without creating additional financial stress. However, it is important to note that even if an installment agreement is approved by the IRS, if the full balance due is not paid off by the due date, interest will continue to accrue.
Dispute The CP14 Notice
If you disagree with the CP14 notice and feel that your tax balance is already settled with the IRS, you have the option to contact the IRS and dispute the letter. Within your CP14 notice, there will be an accurate IRS phone number that you can call to initiate the dispute process. When you call, it is helpful to have all of your necessary documentation on hand that can help the IRS agent navigate your tax situation, such as your canceled checks and amended income tax return.
If you want help disputing your CP14 notice, the tax experts at Ideal Tax can offer advice on the best strategy to solve your tax error and negotiate with the IRS on your behalf with programs like the IRS Fresh Start Program.
Frequently Asked Questions:
How Long Do I Have To Respond To IRS Notice CP14?
The deadline for responding to IRS Notice CP14 is 21 days from the date your notice was sent. Any payments submitted within the allocated deadline will not be subject to interest and penalties.
What Happens If I Ignore IRS Notice CP14?
If you receive IRS Notice CP14 and do not take action to resolve the issue through submitting a tax payment, requesting tax relief help, or disputing the balance, interest will begin to accrue as soon as the payment due date passes. It is important to make a plan to pay back your tax debt before the tax liability grows and the IRS issues subsequent letters informing you of their intent to take more serious collection actions.
If you need any help from professionals when it comes to IRS notices or tax preparation this season, let the experts at Ideal Tax guide you with our free tax consultation.