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What to do when the IRS sends you a CP14 notice

On Behalf of | Apr 25, 2024 | Solutions To Tax Controversies

If you owe the Internal Revenue Service (IRS) money on unpaid taxes, the department will send you a CP14 notice (a warning or a first reminder). You need to be careful about your steps once you receive this notice.

Here is what to do:

Read it

Your CP14 notice will have adequate information regarding the unpaid taxes, including how much you owe the IRS and how to pay it. Carefully review the amounts included in the billing summary to determine if they are correct or if there are any discrepancies. 

Pay the amount

If you agree with the notice, pay the stated amount by the due date stated. If you can’t pay the amount in full, you can make a payment plan (an installment agreement) with the IRS. This will allow you to pay the taxes you owe within an extended timeframe. 

Upon requesting an installment agreement (IA), the IRS will consider certain factors to approve or reject it. If your IA is approved, you need to follow its terms strictly. Avoid late payments or failing to pay all together lest the IRS cancels your plan and charges you interest and penalties. The department will send you a CP14IA notice to remind you to make payments before canceling your plan.

Obtain more information

A CP14 notice may be incorrect. You may disagree with the amount stated or the IRS’ assessment. You may even receive the notice despite making a payment in full; perhaps the department may not have processed your payment due to a correspondence backlog.

In the latter instance, you can provide the IRS with proof of payment. But if you disagree with the notice, consider legal guidance before contacting the department.