What You Need to Know About the CP-14 Balance Due Notice from the IRS
Now that tax season is over, CP-14 notice will be released. No one likes to receive a notice from the IRS, especially if it's a balance due notice. But let’s take a step back and understand what this notice is about.
The CP-14 balance due notice is a letter sent by the IRS to taxpayers who owe unpaid taxes. In this blog, we will discuss what the CP-14 notice is, what to do when you receive it, and the different collection alternatives you can take advantage of.
First, the CP-14 notice is a formal written letter sent to taxpayers who owe unpaid taxes. This notice will tell you the amount you owe and when you need to pay it by. The IRS usually sends out these notices beginning in May, relating to the current filing season. It's important to note that ignoring this notice or any other IRS letters and notices is the worst thing you can do. If you receive a CP-14 notice and cannot immediately pay the full amount, there are several collection alternatives you can take advantage of.
One collection alternative is setting up a payment plan to pay off the balance over time. This option allows you to pay smaller amounts over a scheduled period, making it easier to manage your finances while paying off your debt. The IRS offers different payment options, such as direct debit, payroll deduction, or by mail.
Another alternative is settling the tax debt for less than the full amount owed through an offer in compromise. This is a formal agreement between the taxpayer and the IRS, where the taxpayer offers to pay an amount less than the full tax debt. The IRS may accept this offer if they determine that it's unlikely, they will be able to collect the full amount of the debt.
If the balance is currently not collectible, you can request temporary delay of collection action. However, this option is only available if you cannot afford to make any payments toward your debt. The IRS may place your account in a currently not collectible status, which means they will temporarily stop any collection activity.
If you receive a CP-14 notice, the first thing you should do is read it carefully. The notice will explain how much you owe and when to pay it by. If you can't pay the full amount you owe, you should contact the IRS to discuss your options. The IRS has information about the collection process online and in Publication 594. You can also visit the IRS website to set up a payment plan or submit an offer in compromise.