IRS Notice CP14: what it means and what to do
A CP14 is the first letter the IRS sends when you owe tax. It's the earliest point in the collection process, which means it's also when you have the most options.
What a CP14 means
The IRS sends a CP14 when it has assessed tax on your account that hasn't been paid. Most often, that's because you filed a return without paying the full amount, or because the IRS changed your return and the change created a balance.
The notice shows the tax you owe plus any penalties and interest so far. If you pay the full amount within 21 calendar days of the notice date (10 business days if you owe $100,000 or more), the IRS won't charge more interest on the amount shown.
First, check the balance
- Compare the tax year and amount with your return and your payment records.
- If you already paid, gather proof, such as a bank statement or payment confirmation, and respond using the instructions on the notice.
- If you think the IRS made a mistake, respond by the date on the notice and explain why. Don't ignore it while you wait for an answer.
- You can see your balance and payment history anytime in your IRS online account at irs.gov.
What to do now
- If you can pay in full, pay within 21 days through your IRS online account or IRS Direct Pay to avoid more interest.
- If you can pay within about six months, ask for a short-term payment plan of up to 180 days. There's no setup fee, though interest and penalties continue until it's paid.
- If you need longer, apply for a long-term payment plan (installment agreement). If you owe $50,000 or less, you can usually apply online in minutes. See how IRS payment plans work.
- Ask about penalty relief. If you had no penalties in the past three years and you've filed all required returns, you may qualify for first-time penalty relief.
What happens if you ignore it
Interest keeps adding up daily, and the failure-to-pay penalty grows by 0.5% of the unpaid tax each month, up to 25%. The IRS will send reminders (CP501, then CP503), followed by a notice of intent to levy (CP504) and eventually a final notice. Each step leaves you with fewer, more expensive options.
Where CP14 fits
The IRS sends collection notices in this order. A CP14 is the very first one.
Common questions
Is a CP14 a scam?
Real CP14s come by mail. To be sure, sign in to your IRS online account at irs.gov and check your balance. The IRS never asks for payment by gift card, wire to a person, or crypto, and never demands payment by text or social media.
Will the IRS take my money after a CP14?
No. A CP14 doesn't allow the IRS to levy anything. That can only happen after several more notices, including a final notice that gives you 30 days to appeal.
Can I get the penalties removed?
Possibly. First-time penalty relief is available if you have a clean record for the past three years. You may also qualify for relief if something outside your control, like a serious illness or disaster, kept you from paying.
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Written by Jonathan Samuel, EA, an Enrolled Agent licensed to represent taxpayers before the IRS. This page is general information, not advice for your specific situation.