Receiving any notice from the IRS can be a stressful ordeal, but the CP14 Notice is particularly unwelcome among many of our clients. Whether due to an error in filing or miscalculation, the CP14 Notice essentially communicates that you owe money on unpaid taxes. This type of notice will require quick action in order to resolve. Read on for further information regarding he CP14 Notice.
What is the CP14 Notice?
If you have received a CP14 notice from the IRS, it simply means that you owe money on taxes. The notice will explain how much you owe (with a due date) as well as instructions on how to pay the balance. Fortunately, if the balance is paid in full by the date listed in the notice, you will not owe interest on the amount requested. It’s important that review the notice with scrutiny. At times, the IRS systems can miscalculate your original tax return.
What happens if I can’t pay or pay the full amount that I owe?
Even if you cannot pay the balance in full by the due date given, the IRS will typically allow you to apply online for a payment plan that works best for you. This ensures that you will avoid the most stringent penalties for not paying your taxes on time. You may also be able to appeal to the IRS to remove any late payment penalties altogether if it can be determined that it will be a financial burden to you.
An offer in compromise will allow you to settle your tax debt in an amount that is less than what you owe. Often, this type of payment is one lump sum rather than an installment plan.
What happens if you don’t pay or contact the IRS?
If you choose not to pay the amount listed on your CP14 notice or fail to contact the IRS, you may incur financial penalties. Typically, this is interest accrued on the unpaid amount after the due date provided. If you agree with the IRS’ assessment of the taxes owed, it is best to pay the taxes as quickly as possible, or contact the IRS to set up an installment plan or to discuss penalty abatement.
What if I disagree with the IRS’ assessment?
If you disagree with the IRS’ assessment or the amount of taxes you owe as indicated on your CP14 Notice, it is best to contact an experienced IRS tax attorney before responding. An attorney can help you correspond with the IRS, as well as to develop a strategy for payment or amending your tax returns.
Often, the amount owed is disputed. Depending on the situation, you may be able to file amended returns to reduce the amount owed along with a penalty abatement request.
Speak with a New Jersey IRS Tax Attorney
If you’ve received a CP14 Notice and have questions or would like legal advice, contact Paladini Law by calling (201) 381-4472 or filling out an online form for a free initial 20 minute conversation. Attorney Brad Paladini has helped taxpayers across New Jersey avoid penalties and save thousands. We will review your case, help you determine if hiring an attorney makes sense, and plot a course of action to resolve your tax issue.