CP14 Notice: You Owe Money. What to Do Now

A CP14 notice is the IRS's way of saying you owe money. The IRS says it sent you this notice because you owe money on unpaid taxes. The notice explains how much you owe and how to pay it. IRS: Understanding your CP14 notice

Stay calm. Read the notice, find the due date, and choose one of the options below.

Step 1: Find the due date and the amount

Write down the total on the notice, the tax year, and the due date. The IRS asks you to pay the amount you owe by the due date on the notice. If you wait, the balance can grow. Interest accrues on unpaid tax, and a monthly late payment penalty can apply.

The IRS also says it is always in your best interest to pay in full as soon as you can. If you have not filed the return yet, file it anyway. A penalty can apply for filing late, even when you cannot pay.

Step 2: Pay if you can

The IRS lists these ways to pay:

Direct Pay. You pay from your bank account at IRS.gov/payments. The IRS says Direct Pay is free, needs no sign-in, and lets you change or cancel a payment up to 2 days before the scheduled date. IRS: Direct Pay
Other online options. The IRS lists more payment options at IRS.gov/payments.
By mail. Use the payment instructions printed on your notice.

Keep proof of every payment. Save the confirmation page or the mailing receipt, and put it in the same folder as the notice.

Step 3: If you cannot pay the full amount

Pay as much as you can by the due date. Then ask about a payment plan. A payment plan is an agreement with the IRS to pay what you owe over a longer period. The IRS says you should request one if you believe you can pay the full amount within that longer period. IRS: Payment plans and installment agreements

Two points from the IRS are worth knowing:

When you request a payment plan, the IRS is generally prohibited from levying while the request is pending, with certain exceptions.
If you do not pay, the IRS may file a Notice of Federal Tax Lien or take a levy action.

Plan terms can differ. Check IRS.gov for the current details before you apply.

What if I disagree with the notice?

Call the phone number in the IRS help section of your notice. The IRS asks you to have your paperwork ready, such as cancelled checks or an amended return.

What about penalties I cannot resolve?

The IRS says the Taxpayer Advocate Service is an independent office inside the IRS that can help when you cannot resolve a penalty on your own. You may also qualify for help from a Low Income Taxpayer Clinic. The IRS notes that you can authorize someone to contact the IRS on your behalf.

Worked example

Illustration only, with made-up round numbers: Lee gets a CP14 notice that shows $1,000 owed, plus interest. Lee can pay $300 now, so he pays that amount through Direct Pay before the due date. He keeps the confirmation.

For the rest, Lee requests a payment plan on IRS.gov. He checks the current terms first, and he saves the plan confirmation with the notice. He does not ignore the balance. He pays on the schedule he agreed to.

Common mistakes

Putting the notice in a drawer. Interest and penalties keep building while the balance is unpaid.
Paying less than you owe without asking about a plan. A partial payment still leaves a balance.
Calling without the notice. Have the notice and your return in front of you.

Checklist

Write down the amount, the tax year, and the due date.
Pay what you can by the due date, and keep proof.
If you cannot pay in full, look at a payment plan before the due date.
If you disagree, call the number in the notice's help section with your paperwork.

General information, not advice for your return.

Sources: IRS, Understanding your CP14 notice (https://www.irs.gov/individuals/understanding-your-cp14-notice); IRS, Direct Pay (https://www.irs.gov/payments/direct-pay); IRS, Payment plans and installment agreements (https://www.irs.gov/payments/payment-plans-installment-agreements); IRS, Tax penalties and interest, Publication 594 (https://www.irs.gov/pub/irs-pdf/p594.pdf); IRS, Publication 1, Your Rights as a Taxpayer (https://www.irs.gov/forms-pubs/about-publication-1) This is general information, not advice about your specific return.

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