Getting almost any notice from the IRS is stressful for your clients, but the CP14 is even more unwelcome than most. Having the right guidance from a capable and knowledgeable tax professional can make all the difference for a client facing down the displeasure of the IRS, so let’s take a look at what you need to know when your client comes to you after receiving Notice CP14 from the IRS.
Why did your client get a CP14 Notice?
IRS Notice CP14 is a notice of balance due. Your client got a CP14 because the IRS believes that your client didn’t pay all the taxes they owe. The notice informs your client of the balance now due, including penalties and interest due on the unpaid balance.
What’s on the the CP14 Notice?
The CP14 is a fairly long notice—often several pages in length. It contains information on the amount your client owes, payment options, the deadline for repayment, and a detailed description of the penalties and interest the taxpayer has incurred.
If you want to see an example of a CP14, you can find an example on the IRS website.
What do you do if you agree with the CP14 Notice?
If you and your client agree with the IRS’s assessment of taxes owed, it’s best to pay the taxes due as quickly as possible. Even if your client is unable to pay their tax bill in full, the worst thing you can do is nothing. You can help the client lower their tax debt through penalty abatement or an offer in compromise, or you can simply help them set up an installment agreement to spread out the payments.
What do you do if you disagree with the CP14 Notice?
If you disagree with the IRS’s assessment on the CP14, it’s time to get ahold of the IRS. The notice will have a phone number for you to call so you can get the process started as quickly as possible.
Want to learn more about the fastest way to deal with IRS notices?