In June 2023, the IRS began sending millions of CP14 notices to taxpayers countrywide. Those who receive these statements typically have many questions about what they mean and how to handle them. The Polston Tax Resolution & Accounting professionals are here with the answers you need.
What Is an IRS CP14 Notice?
An IRS CP14 is a notice stating you have unpaid taxes due and requesting your payment. These apply when the balance due is over $5 and no calculation errors have occurred. The notice details the amount you owe, including penalties and interest, and provides a due date for payment.
CP14 notices are common and often the IRS’ first attempt to collect back taxes.
Why Did I Receive an IRS CP14 Notice?
The IRS sends CP14 notices when it has processed your return and found you have an outstanding tax liability.
For example, imagine you received interest on your savings account. The bank reports those eligible amounts to the revenue agency. You may owe taxes if you accidentally overlooked including that income on your return. CP14 notices can also result from situations like inaccurately claiming a deduction.
A more common occurrence is an IRS processing backlog. You or your tax professional may have filed an amended return that the agency still needs to process. Or, you may have made a payment they still need to apply. Both can generate a CP14 notice.
Do I Have to Respond to a CP14?
It’s best to pay attention to the notice, even if you believe you’ve resolved the matter through an amended return or previous payment. A prompt response preserves your appeal rights and prevents further collection activity.
How Do You Respond to a CP14 Notice?
Your CP14 notice lists contact information by mail and phone, usually in the upper right corner. There may be additional information toward the end of the letter, such as website resources you can access.
Filing a Dispute for an Inaccurate Determination
If you receive a CP14 notice but already paid, you or your tax professional should contact the agency as soon as possible using the instructions provided. Be prepared to supply evidence of payment or an amended return if you’ve made it. Other appeal options may exist, and an experienced tax attorney like those at Polston Tax can help you identify the best solution for your case.
Resolving an Accurate Determination
It’s also important to react quickly when the IRS’ finding of tax liability is correct. Failure to pay by the due date can result in additional penalties and interest added to the original amount owed.
How Do I Pay My CP14 Penalty, Interest and Balance Due?
The IRS accepts multiple payment options to help you quickly resolve the taxes owed when you can pay by the due date. These include:
- Direct payments from your bank account — for individuals only.
- Debit and credit card payments.
- Digital wallets.
- Wire transfers.
- Check or money orders.
- Cash through retail partners for amounts up to $1,000.
In-person payments through multiple methods are available at Taxpayer Assistance Centers.
What If I Can’t Pay by the Due Date?
If you’re unable to pay by the due date, the IRS has solutions that may help. Options include:
- Long-term Installment Agreements: These are fixed monthly amounts you pay to resolve your back tax liability. This strategy requires you to apply and pay a program fee.
- Short-term payment plan: The IRS can extend the standard 60-day payment deadline up to 180 days with no application or processing fees. During this time frame, the amount you owe continues to accrue interest and penalty charges.
- Temporary collection delay: You can temporarily delay the payment of your back taxes if you’re experiencing significant financial issues. The agency calls this “Currently not Collectible,” so it won’t enact further collection measures. However, interest and penalties continue to apply to the unpaid balance.
- Offer in Compromise: If it’s unlikely you’ll ever be able to pay the amount in full, an Offer in Compromise may be the best solution. The process can be challenging to navigate alone, so it’s best to consult a professional tax attorney like us for advice.
How a Polston Tax Attorney Can Help If You Receive a CP14
When working with the IRS, being proactive is usually the best solution. Having a Polston Tax attorney on your side during the process can help restore your peace of mind. Our experienced lawyers:
- Handle Offers in Compromise to help you get a more favorable outcome: We draw on 100 years of collective industry service and a knowledgeable team with extensive negotiation skills.
- Advise on the best way to settle your tax liability with any taxing authority: Our team is licensed in all 50 states to work with taxpayers nationwide for any state and federal taxes.
- Identify your appeal options and guides you through the process step-by-step: We stay up to date with ever-changing codes and collection tactics to offer skilled appeal assistance.
- Represent you in tax court when other resolution avenues have failed: If litigation is the only answer, our attorneys know how to present your case to the court in the best possible terms.
- Prevent your liability from growing: We know how to deal with the IRS and successfully request relief through strategies like penalty abatements that can help reduce the overall amount you owe.
- Stop aggressive collection techniques: Polston Tax professionals have the skills to resolve your issue to avoid tactics like bank levies and wage garnishments that can significantly impact your financial health.
Trust Polston Tax for Professional Tax Advice
Unlike some other law firms, tax law is all we do. That singular focus allows us to offer in-depth legal guidance for tax resolution. We’re always here to support you so you never have to deal with the IRS alone. Our team has earned industry recognition as a leader in taxes and accounting and boasts a track record of success for our customers.
Contact us for a free consultation to learn more about how we can help.
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