IRS CP14 Notice

What Is IRS Notice CP14 Balance Due Notice?

IRS Notice CP14 is one of the most common IRS notices. You don’t need to panic if you receive this notice — the IRS is not planning to take any serious collection actions just yet. The notice just alerts you about your unpaid balance and your payment options. Generally, this is the first automated notice sent regarding IRS collection procedures and acknowledges a balance due to the IRS.

So, what should you know about Notice CP14? What happens if you receive a CP14 IRS notice but already paid? Here’s an overview of what to do and what to expect if you receive Notice CP14. To get help with back taxes, contact us at The W Tax Group to discuss your options and help you deal with the IRS.

Key Takeaways

• The CP14 is a balance-due notice for taxpayers with unpaid IRS tax debt.
• The CP14 lists the civil penalties (civpen) and interest on your account.
• If you set up payments, the IRS won’t pursue collection actions.
• If you ignore the notice, the IRS may initiate collection actions such as wage garnishment or bank account levy.
• You may want to request penalty abatement to remove penalties.
• If you disagree with the tax due on the notice, contact the IRS.
• A tax attorney can help you deal with your unpaid IRS taxes.

What Is a CP14 Notice?

The IRS sends CP14 notices when you have unpaid taxes and owe the IRS money. Usually, you’ll get this notice if you miss the tax deadline. This is the IRS’s first attempt to collect what you owe. 

To learn more, visit https://www.irs.gov/cp14, which the IRS lists on each CP14 notice. On this page, you can read a brief overview of the next steps and what your notice means. The IRS also provides information about how to take care of your tax balance.

The CP14 notice will outline exactly what you owe, including any penalties and interest, as well as how to get it paid. The best thing you can do is follow all instructions on the CP14 notice and pay your balance by the deadline provided. If you can’t pay off your balance in full, it’s time to explore other options with the IRS for tax relief.

You may also wonder, is CP14 a civil penalty or civpen? Most of the time,IRS penalties are civil penalties. In instances of tax fraud or evasion charges, the IRS may issue criminal penalties that are more severe and may include prison time. But if you simply missed the tax filing or payment deadline, the IRS would start with civil penalties noted on Notice CP14.

What to Do If You Agree with the Tax on CP14

Read through your CP14 notice carefully and do the math. If you agree with the amount due, make arrangements to pay your back taxes. The sooner you pay, the more penalties and interest you’ll avoid building up. 

Alternatively, you can apply to set up a payment plan or see if you qualify to settle for less than you owe through the offer-in-compromise program. These options help you avoid the IRS taking further action, like issuing a federal tax lien on your property.

How to Pay Notice CP14

Always pay close attention to the instructions on your notice. There are a few different ways to take care of the balance on Notice CP14:

• Pay in full online or through the mail.
• Set up an installment agreement to pay the taxes in monthly payments.
• Apply for an offer in compromise so that you can make a lump-sum payment and get out of the tax amount owed for less than you owe.

To talk about other options, contact us today. We are experienced tax attorneys with in-depth knowledge about IRS programs and options.

How to Pay CP14 Online

You can quickly and easily pay your unpaid tax balance online through the IRS’s online payments system. This site is used to also make payments toward your payment plan, if applicable. 

Through the system, you’ll just confirm your identity and either pay today or schedule a payment. You don’t have to sign up for an IRS Online Account to make a payment. Link your bank account or use a debit or credit card to pay.

Paying your taxes online helps you do it fast, so you can avoid further penalties and interest from building up.

What to Do If You Disagree with the Tax on CP14

If you disagree with the amount due, call the IRS or contact a tax lawyer to help you. Typically, the notice has a phone number on the second page. 

One possible reason you may disagree with a CP14 notice is that you don’t agree with the penalties included on the notice. In this case, you should try to seek penalty abatement to get those penalties reduced or removed. 

If you think an IRS CP14 mistake was made, such as an error in issuing a penalty, contact the IRS right away. For example, if the IRS applied a late filing penalty but you filed on time, you should contact them about the error.

Don’t ignore the notice, even if you don’t agree with it. If you don’t respond, the IRS will assume that you agree with the notice and will continue its efforts to collect.

What If I Get a CP14 Notice but Already Paid My Taxes?

Another reason you may not agree with the CP14 notice is if you already paid. If you paid your taxes in the last 21 days, the IRS may have sent out Notice CP14 before receiving your payment. You can usually just disregard the notice in this situation since the IRS will update your account when they receive the payment.

However, in some cases, you may receive this notice about penalties and interest if you made your payment late.

To illustrate, take a look at this sample CP14 notice. If you look at the billing summary, you will see that the taxpayer paid their entire tax owed, but then, they received several penalties and interest charges. In this case, the entire bill is made up of penalties and interest.

Penalties and Interest on CP14 Notice

The IRS assesses late payment and failure-to-file penalties from the very first day you miss a payment or filing deadline. Then, the agency reassesses these penalties monthly, until they reach their respective maximums. Interest accrues on all unpaid taxes until they are resolved. 

Here are the penalties you may see on your Notice CP14:

• Failure-to-file penalty — This penalty is 5% of the tax owed, and it’s assessed monthly until it maxes out at 25% of your balance. The IRS assesses it when you don’t file your tax return on time. If you’re more than 60 days late, the minimum penalty is the lesser of $485 in 2024, or 100% of your balance.
• Failure-to-pay penalty — This penalty is 0.5% of the balance. It’s assessed monthly until you pay your balance or it reaches 25% of your balance. This penalty can increase to 1% per month if the IRS issues a notice of intent to levy.
• Failure-to-pay estimated tax — If you don’t pay your taxes throughout the year, the IRS can assess the failure-to-pay estimated quarterly tax fee. Typically, this applies to business owners, self-employed people, and freelancers. However, this fee gets added to your tax due when you file your return. Although it’s a penalty, it will typically be rolled into your tax balance, not the penalty section of this notice.
• Interest charges — The IRS applies interest to all unpaid balances. Interest rates change quarterly, and the notice should note the rate applied to your bill.

What if the penalties are incorrect, or it’s your first time getting a penalty? You can request to have the penalties removed by calling or writing to the IRS. The IRS often removes first-time penalties if you have good tax compliance history, and the agency also waives penalties for people who have reasonable cause for filing or paying late, such as economic hardship, natural disasters, or loss of records. 

The IRS also removes penalties if they were incurred due to incorrect written advice you received from the IRS. Talk to a tax professional about your situation to figure out the best way forward.

How to Find Your Current Account Balance

If you pay the tax balance by the due date, you shouldn’t incur any additional interest or penalties. The amount shown on your notice is the correct amount to pay. However, if you’re paying after the due date, your balance may have incurred additional interest and penalties.

To find your current balance, visit IRS.gov/balancedue. You may need to set up an online account to see your details. 

What If You Ignore IRS Notice CP14?

If you ignore Notice CP14, the IRS will continue to try to collect the liability. Typically, the agency will send you Notices CP501, CP503, and CP504 next. These notices will also show how much tax you owe, plus the interest and penalties on your account. 

If you don’t respond to these notices, the IRS may take the following actions:

• File a Federal Tax Lien against your assets.
• Garnish your wages.
• Seize the funds in your bank account.
• Levy personal or real property.
• Garnish your Social Security benefits or pension payments.
• Seize your retirement accounts.

There are different timelines for these actions. For example, the IRS doesn’t need to notify you before filing a tax lien. In contrast, if the agency wants to garnish your wages, they must give you at least a 30-day notice, and that letter typically comes a few months after the initial demand for payment but the exact garnishment timeline varies. 

The IRS has a lot of power to collect unpaid taxes. You don’t want to get to this point in the IRS collection process. You can avoid these collection actions by contacting the IRS as soon as possible after you receive CP14, or reach out to a tax expert for help right away.

What If You Can’t Afford the Tax Due on CP14?

If you can’t afford to pay the balance shown on Notice CP14, you have several options. As noted above, you can apply for an offer in compromise. This is when the IRS lets you settle for less than you owe. You have the option to pay off the entire settlement amount in five months or less or make payments on the settlement for up to 24 months. The IRS will agree to an offer in compromise if your offer is all the agency can expect to collect from you.

You can also apply for currently-not-collectible status. If you qualify, the IRS will pause collection actions on your account. But if your financial situation changes in the future, you may have to pay the bill.

Another option is the partial payment installment agreement or PPIA. This is a form of payment plan, but you may be able to pay less than you owe in the long run. You agree to make set monthly payments for a period of time, and then once you reach the date the debt expires, the rest of the balance is forgiven. PPIAs are for those who can’t afford to pay their tax bill and not everyone qualifies. 

Get Help with Notice CP14

Received IRS Notice CP14? Looking for help with your unpaid taxes? Want assistance dealing with the IRS? For help with any of these issues, contact us now. At The W Tax Group, we can help you deal with the IRS and get your problem resolved in the most effective way possible.

Don’t let unpaid taxes cause you any more stress or worry. Get help from our experienced tax attorneys today.