What is the IRS Notice CP14?

Balance Due Season is here and we have some interesting news coming out of the IRS this week!

Every year the IRS sends taxpayers who filed a return that year, and owe, a balance due notice as statutorily required after tax season.

Recently Darren Guillot (IRS Deputy Commissioner for Collection and Operations) estimated that from the end of May to early June, approximately 5-8 million CP14 Notices will be sent to taxpayers.

What is the CP14?

The CP14 is the Notice of Tax Due and Demand for Payment. It is the first and most common notice sent to taxpayers. The notice advises the taxpayer that there is a tax due, states the amount of tax, including interest and penalties, and requests payment within 21 days

Why is the CP14 so important?

The CP14 is one of the ways that the IRS fills the collection funnel! AKA creates work for tax resolution professionals! If the taxpayer doesn’t respond things will begin to escalate:

CP 501 – Important Notice

CP 503 – Second Notice

CP 504 – Notice of Intent to Levy

Letter 1058 – Final Notice of Intent to Levy

The IRS has been sending the CP14, but last year slowed/stopped many of the collection notices…

Guess what – They’re starting again!

Many have speculated that customer service had gotten so bad at the IRS that they had to pause collection notices because there was no one to answer the phones. After their injection of funding they were able quickly onboard 6,000 new employees to help!

Now Darren Guillot says collection notices paused last year will gradually resume.