IRS Notice CP14: Balance Due

IRS Notice CP14 is the first formal communication the IRS sends to taxpayers to inform them of an outstanding tax balance. It is typically issued after the IRS processes your tax return and determines that you owe more in taxes than you paid. The notice provides the total amount due, including the tax owed, penalties, and interest, and includes a due date for payment.

Key details in Notice CP14 include:

• Amount due: The balance of taxes, penalties, and interest.
• Payment instructions: How and where to make payments.
• Payment options: Information on how to set up an Installment Agreement if you cannot pay the full amount.
• Consequences of non-payment: If the balance is not paid by the due date, penalties and interest will continue to accrue, and more aggressive collection actions, such as liens or levies, may be initiated.

It’s important to address CP14 immediately, even if you cannot pay the full balance. Taxpayers who ignore the notice may receive additional notices like CP501, which escalates the collection process.