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You Have a Balance Due – CP14

Filing your return is sometimes not your only contact with the IRS for the year. If the tax agency finds errors on your return that lead to a tax assessment, they will send Notice CP14 for collection. Usually, taxpayers receive this notice within four weeks from the time of the processing of their return.

Notice CP14 is the first contact the IRS makes to collect taxes past due. If the notice is ignored or payment is not made, the IRS sends additional notices and can employ collection actions such as a lien or a levy to collect the taxes due. To resolve the issue, taxpayers may follow these steps:

  1. Review the Notice

The first thing to do when receiving Notice CP14 is to know why you received it. The notice includes the following:

  • The tax year for which taxes are due
  • The date on which the notice was issued
  • Your Social Security Number
  • IRS phone number
  • Tax amount owed
  • Payments and credits
  • Penalties charged on taxes owed
  • The final amount due to be paid
  • The deadline for paying the amount owed

The notice also includes information on payment options, penalties, and interest.

  1. Determine If the IRS is Correct

Before agreeing or disagreeing with the notice, check to see if your return had errors that led to the assessment of taxes due. If you find errors, you will need to pay the amount owed before the payment deadline in order to avoid further penalties and interest.

If you do not identify errors or find that the amount owed is greater or less than what the IRS determined, you can call the IRS on the phone number indicated on the notice. An IRS representative will assist you in resolving the issue.

  1. Payment Options

You can make the payment using IRS Direct Pay, a service that allows you to electronically pay your taxes directly from your savings or checking account. Alternatively, you may pay by credit or debit card.

If you cannot pay the full tax owed, either send a request to the IRS to receive up to 120 days to pay, or set up an Installment Agreement. An Installment Agreement allows taxpayers to pay their tax bill in fixed monthly installments. For tax bills of up to $50,000, the IRS allows Streamlined Installment Agreements. For larger debt amounts, it is advisable to seek assistance from a tax professional before sending a request for an Installment Agreement.