Get An IRS CP14 Notice? What It Means And What To Do
Did you receive a CP14 Notice from the IRS? If so, you are not alone, and it is likely not a scam. The IRS recently made an important announcement regarding resuming its collection activities, and they plan to send anywhere from 5 to 8 million notices during May and June 2023.
During the COVID-19 emergency pandemic declaration, which began on March 25, 2020, the IRS temporarily suspended certain compliance actions. The relief was expanded in February 2022, including suspending collection notices like lien and levy notices. However, starting in May 2023, the IRS resumed sending out these collection notices to taxpayers. Before taxpayers receive any collection notices, they will first receive an IRS CP14 Balance Due Notice, which is, essentially, the restart of the collection process.
Information Within CP14 Notices
CP14 Balance Due Notices will contain general information about the tax year for which you owe, the amount, your specific penalties (several types of penalties can be incurred), the interest you owe, and the deadline for submitting payment. Interest may continue to increase with each notice if ignored, and further IRS collection steps may occur.
If you fail to respond, you will continue to receive additional notices (CP501, followed by CP503 and CP504). Remember that if applicable, you may be able to apply for the first-time penalty abatement or penalty abatement for reasonable cause.
Additional Time for Disaster Relief Areas
Some California taxpayers who have already filed their tax returns may have recently received an IRS CP-14 Balance Due Notice from the IRS stating that they owe for their 2022 tax return (which needs to be paid by the end of July). However, here’s some good news: if you live in a county that falls within a federally designated disaster area, you have some extra time. Payments for your 2022 tax liability and any 2023 estimated tax payments are not due until October 16, 2023. Furthermore, since the IRS’s system has automatically generated these notices, there’s no need to respond to them at this time.
Please note that the filing/payment postponement relief until October 16th does not apply to Lassen, Modoc, and Shasta counties.
Get In Touch
Grimbleby Coleman anticipates that the IRS will issue a statement regarding this matter soon, and we will keep you updated with any further information. The IRS assures all taxpayers that receive an automatically generated CP14 letter in error that there is no need to contact the IRS or their tax professional. Nonetheless, the tax team at Grimbleby Coleman is here to provide any guidance or clarification you need. Reach out to your accountant or contact us when questions arise.