IRS Collection CP14 Notice Requires a Response. By Attorney Robert Schaller

The IRS is set to mail the IRS Collection CP14 Notice to millions of taxpayers this June who are suffering from unpaid IRS back taxes. Put simply, an IRS NP14 Notice is sent by the IRS when the IRS believes the taxpayer owes unpaid taxes. 

What should I do after receiving an IRS CP14 Notice?

You would be wise to contact a tax attorney immediately. The tax attorney will interpret the notice and explain the amount of money the IRS claims is owed. The tax attorney will identify the due date of the payment and options to pay the IRS tax deficiency. Plus, the tax attorney will suggest alternatives if you cannot afford to pay the taxes in a lump sum.  

What happens if I cannot pay the full amount owed by the due date on the CP14 Notice?

Interest accrues on any unpaid IRS back taxes after the due date identified in the IRS CP14 notice. Plus, you will be hit with a late payment penalty. Ignoring the CP14 notice and failing to pay starts the IRS collection cycle against you.

What are my options to pay IRS back taxes?

Attorney Robert Schaller urges all taxpayers to develop an IRS action plan that stops the IRS collection process and eliminates the IRS back taxes. If a taxpayer has no money to pay the IRS, then the tax attorney should negotiate a change in the taxpayer’s status at the IRS – to “currently not collectible.” If some, but not all the tax balance can be paid, then the taxpayer should consider the following options: installment payment plan, IRS  Offer in Compromise, and IRS innocent spouse relief. A competent tax attorney can explain the details of each alternative during the initial consultation.