Video: Understanding the IRS CP14 Notice

In this video, our Founder, Stephen Hardy discusses the CP14, the first notice the IRS will send when they think tax is due.

CP14/CP161, Balance Due Notice and Demand for Tax

This is the first notice you will receive when you have a balance due to the IRS. It is one of the more friendly correspondence you will receive and it is basically a bill or invoice that states how much the government believes you owe. There is a summary on the notice that shows:

  • How much tax is due;

  • Any payments you have made;

  • Penalties that have been assessed against you, including:

  • Failure-to-File Penalties;

  • Failure-to-pay Penalties;

  • Failure-to-pay Estimated Tax Penalties;

  • And any Interest Charges that have been added to your account (interest is added to the tax due and penalties).

The IRS then asks you to please pay the amount due using the payment voucher, electronically, or by making an alternative arrangement like a Payment Plan or an Offer in Compromise. The payment has to be remitted by the date shown on the letter to avoid additional penalties and interest.

If you do not agree to the amount due, a phone number is provided so you can call the IRS to discuss your account. We always think it is best for your tax representative to call on your behalf - please contact us if we can assist you.

The CP14 is generally sent 6-8 weeks after a tax return has been filed and there is tax outstanding. Any penalties you have been assessed and the interest charges will be detailed along with an explanation of the charges and rates at which they are applied.

Click Here to download a sample CP14.

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