CP14 Notice From IRS: First Tax Balance Due Notice

CP14 Notice From IRS: First Tax Balance Due Notice

The IRS sends a CP14 notice when you have an unpaid tax balance of $5 or greater. IRS notice CP14 is also known as the First Tax Balance Due Notice, and it is often the first IRS notice you receive when you have unpaid taxes.

[UPDATE: The IRS will start sending CP14 notices again in June 2022 to everyone with a tax balance due. Some IRS notices were paused earlier in the year but expect to receive a CP14 if you owe the IRS.]

Because any notice from the IRS can be unsettling, it is understandable if you’re concerned about your CP14 notice and aren’t sure how to respond. Rest assured that no matter the situation that prompted the CP14 notice, you have options for resolving it without undue financial hardship. That said, the worst thing you can do is ignore the CP14 notice and hope the tax issue goes away.

Here are the answers to the most asked questions about IRS CP14 notices and how to handle them.

Why Did I Receive a CP14 Notice From the IRS?

You received a CP14 notice from the IRS because their records show you owe the IRS at least $5 in unpaid taxes. IRS CP14 is usually the first tax balance due notice you receive from the IRS, and it precedes any aggressive tax collection efforts such as liens, levies or wage garnishment.

You can avoid such outcomes by responding to the CP14 notice in a timely manner and working out a suitable payment arrangement with the IRS.

How Much Time Do I Have to Respond to a CP14 Notice?

Your CP14 notice contains a deadline date by which the tax balance due must be paid or correspondence must be made to avoid further interest and penalties. That date is typically 60 days from the date the notice CP14 was sent, but you should read yours carefully to be sure.

What If I Can’t Pay the Full Amount I Owe the IRS in the CP14 Notice?

If you receive a CP14 notice but can’t pay the full amount you owe the IRS, the last thing you should do is ignore the CP14 notice. The tax balance due won’t go away, nor will the efforts by the IRS to collect it — they will only get more aggressive.

First, verify the amount listed on the CP14 notice with your own records and make sure they match. The IRS is not infallible, and they have attempted to collect tax debts from people who owed nothing or were even owed a refund. If you believe the IRS notice CP14 was sent in error, you should contact the IRS and begin the CP14 dispute process.

If, on the other hand, the tax debt is legitimate, but you aren’t in the financial position to pay what you owe the IRS, you have several tax relief options. If you’re facing a true financial hardship, you might qualify for an Offer in Compromise (OIC). An OIC is an agreement by which the IRS settles your tax debt for less than you owe, sometimes much less.

Another popular tax relief option is setting up an IRS payment plan or installment agreement in which you settle your tax debt over time with smaller monthly payments that you can afford based on your income and other debts.

Will the IRS Charge Penalties and Interest If I Don’t Pay the CP14 Notice Balance?

By the time you receive a CP14 notice, there’s a good chance you’ve already been assessed a late fee plus interest on your unpaid tax balance. If you do not make arrangements to pay the balance by the due date on the CP14 notice, you’ll accrue additional interest and penalties.

Who Do I Contact If I Disagree with a CP14 Notice?

The upper right corner of your CP14 notice lists an IRS phone number that you can call to begin the CP14 dispute process with an IRS representative.

Will I Receive Other Notices From the IRS Before They File a Tax Lien or Issue a Levy?

You might receive additional IRS balance due notices (CP501, CP503, CP504, etc.) from the IRS before they begin aggressive collection efforts, but please note they are not required to send them.

If you ignore your CP14 notice, you risk a federal tax lien or IRS levy, including wage garnishment, at any moment.

How Can Wiztax Help?

The key is to get started. Ignoring these notices makes everything more complicated. Call us today at (866) 568-4593 to learn more about how we can help, or start here to take our free online evaluation. Regardless, we promise to save you thousands in fees.

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