CP14 Notice: You Owe Unpaid Taxes [COVID-19 Update]

Sample IRS CP14 Notice

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A CP14 notice is a bill from the IRS when you owe unpaid taxes. One of the most common situations is if you filed a return with taxes owed but didn’t make a payment at the same time. You may also receive a CP14 notice after the IRS previously notified you it made changes to your return.

Types of CP14 Notices

Notice/Letter Number Name Notes Example Notice/Letter
CP14 Notice You have a balance due for [year] You have unpaid taxes and/or penalties and interest. Example
CP14H Notice You have an unpaid shared responsibility payment for [year] You didn’t purchase minimum essential healthcare coverage and owe a shared responsibility payment. This is the Obamacare penalty for not buying health insurance. Example
CP14I Notice You have unpaid taxes for [year] You owe taxes and penalties due to not taking required minimum distributions from your retirement account or you contributed more than your contribution limit for the year. Example

Why did I get a CP14 Notice for 2019 taxes due July 15, 2020 even though I paid by July 15th?

Assuming the taxes you received the notice for were eligible for coronavirus tax relief, it may be a simple processing error. Even after the IRS receives your payments, it can take several weeks for it to get posted to your account. The CP14 Notice may have been generated before your payment was fully processed.

If you paid by the due date, you won’t actually owe any listed interest and penalties. They should be removed automatically once your payment gets posted to the proper date. You can go to the IRS website to view your account or give them a call to check your current account status. To be safe, don’t ignore the notice until you’ve verified your payment was posted and you owe $0.

What is Notice 1052?

Some notices are coming together with a Notice 1052. These notices are notices that the IRS had generated but not yet mailed during the shutdown. Instead of the IRS redoing the original notice, the Notice 1052 tells you the new date that you have to pay or respond by. If you already paid, see above.

The IRS also says it mailed 11,000 notices without the Notice 1052 when the Notice 1052 should have been included. It will be contacting those taxpayers separately.

Why does the IRS send a CP14 Notice?

  • CP14 Notice: A standard CP14 Notice does not mean that the IRS is changing your return or auditing you. It means that you have a balance due based on information you previously provided. This could be something as simple as filing your tax return online and waiting to mail a check until later.
  • CP14H Notice: You didn’t buy health insurance when the IRS believes you were required to. You owe the shared responsibility payment.
  • CP14I Notice: There are penalties if you don’t take required minimum distributions from certain tax-advantaged retirement accounts. There are also penalties if you contribute too much.

General CP14 Notice Explained

This is a general, catch-all notice when you owe taxes for a variety of reasons. See the notice or previous notices for details. How to respond will vary based on why you owe.

CP14H Notice Explained

What is minimum essential healthcare coverage?

Minimum essential healthcare coverage is a policy that meets the requirements of the Affordable Care Act. This may be a policy purchased through the exchange (Obamacare) or privately purchased coverage.

What if I had healthcare coverage?

If you had healthcare coverage for the entire year, verify that your policy met the definition of minimum essential coverage. If it did, you will need to resend the IRS proof of coverage.

What if I disagree with the amount of the penalty?

The shared responsibility payment is set based on your income, filing status, and number of dependents. If you disagree with the amount of the penalty for a reason other than that you had coverage, there may be an error somewhere else on your tax return.

What happens if I don’t pay the shared responsibility payment?

Unlike other tax debts, the law specifically forbids the IRS from using liens, levies, and most other collection tactics to collect an unpaid shared responsibility payment. However, the IRS will apply your future refunds towards the debt and interest and failing-to-pay penalties will apply until you pay it in full.

CP14I Notice Explained

What are required minimum distributions?

Once you reach age 70.5, you must begin withdrawing money from tax-deferred accounts such as traditional IRAs or 401(k)s. The minimum amount is based on your life expectancy and account balance. The purpose for this law is for you to withdraw the money and pay taxes while you are still alive rather than using tax-deferred accounts to pass money to future generations.

What are the legal limits on contributions?

This refers to the maximum contribution per year to an account type such as $5,500 for an IRA or 20% of compensation into a SEP IRA. Most brokers will alert you if you are at the contribution limit, but it may be possible to contribute too much if you have multiple accounts at different brokers.

One common situation where a CP14I notice is incorrect is when you rolled over an account and that transaction was improperly reported as a new contribution rather than a rollover.

What if I already paid or started working with the IRS?

If you already made a payment or are working with the IRS to address the balance due, you can disregard the CP14 notice. It can take weeks for the IRS computers to get in sync plus the time it takes to mail things, so a CP14 notice can be out of date. It may still be a good idea to call the IRS to double check your account status is what you think it is. Keep in mind interest accrues until you pay your account in full.

In addition, there’s no pause on interest and penalties if you’re disputing changes to your return. If you’re successful, this likely won’t matter because the IRS will remove wrongly applied interest and penalties. However, if you’re unsuccessful, waiting longer to pay could add interest and penalties.

What if I disagree with the amount owed?

In almost all situations, the amount on a CP14 should match what the IRS thinks you owe. This would be either based on your original return or based on previous IRS adjustments. If the IRS made adjustments, you would disagree with that notice rather than the CP14. If you failed to respond to a previous notice in time to disagree, you may still be able to file an amended return.

If you already paid, the first thing you should do is contact the IRS to see if they received the payment after they sent the notice. You will need to provide proof of payment if the IRS has no record of your payment.

If you still disagree with what the IRS says you owe or aren’t sure, you may want to consult with a tax professional. In addition to challenging the amount you owe, you may also be able to apply for a penalty abatement.

What are my payment options?

You have several options to pay the amount owed.

  • Pay now in full via check, direct deposit, or credit card.
  • Installment agreement (payment plan) directly with the IRS to pay over time.
  • Offer in compromise to pay less than the full amount when it would be impossible for you to pay in full now or in the future.
  • Currently not collectible if your current financial status leaves you unable to pay now but you may be able to pay in the future.

What if I don’t pay?

If you don’t pay the balance owed, interest and penalties may continue to accrue. The IRS may file a tax lien, garnish your wages, or seize your bank accounts or other property.

The most important thing to know is that the IRS is much more understanding and willing to work with you if you’re making efforts to pay rather than ignoring them. With several payment options available, doing something is almost always better than doing nothing.

Need personal help? Click here for additional free resources or to find an accountant, attorney, or other professional near youRemember: This blog post and the comments provide generalized information that may be out of date or inaccurate for your situation. Always schedule a personal consultation with an appropriate licensed professional in your area before taking action. For full terms of use, click here.

Have general questions about this post or want to learn more about a related topic? Please leave a comment at the bottom of the page. Comments are public, and I can’t provide individual advice, but it helps me make the posts more useful for the future. Please do not post personal information. If you need personal assistance, please contact the relevant government agency or hire an appropriate professional near you.

12 Comments on "CP14 Notice: You Owe Unpaid Taxes [COVID-19 Update]"

  1. Michelle Aikens | January 19, 2021 at 10:47 pm | Reply

    I have a savings account with the amount owed,who do I contact the easiest way to take care if it?

  2. Mary A Gurrola | October 20, 2020 at 6:15 pm | Reply

    I filed my 2019 taxes before April 15,2020. I paid my taxes that same day, which the IRS TOOK THE MONEY OUT OF MY CHECKING ACCOUNT ON APRIL 16, 2020. TODAY I RECEIVED A LETTER STATING I HAVENT PAID. I HAVE MY STATEMENT PROVING IT WAS PAID. WHAT SHOULD I DO? I CALLED BUT WAS ON HOLD FOR OVER 30MINUTES.

    • 30 minutes is short for the IRS. Waiting is the only way to be sure. You can also check your account on the IRS website to see if it says you owe money, what payments they posted, and what they say you were supposed to pay in taxes.

  3. Mary Janet Wakefield | September 22, 2020 at 7:12 pm | Reply

    I am sending out a check as I just received my social security security I would like to set up installment with my debit card on the 30th each month. how do i do that

  4. Tawan J Jones | August 18, 2020 at 7:51 pm | Reply

    Yes,Ive already sent in a cashiers check for 258.00 which is the breakdown my tax preparer gave for 4 payments which would equal out to 1056.00.I sent the check to your office in San Francisco,Ca so my balance should be lower than the 1069.08 that’s on the new letter you have sent me.Please contact me about this matter.

  5. Barbara Taylor | August 17, 2020 at 9:40 pm | Reply

    Today I received a CP14 notice stating I hadn’t paid my 2019 taxes. I have found my cancelled checking paying the taxes owed however I see my Social Security number is incorrect. I can not find a phone number to call to resolve this. Should I do it by sending copies in the mail?

    • Go to the IRS website and click Help. There should also be a phone number on the letter, but I always say to go through the IRS website just in case of the small chance that the letter is fake and from a scammer.

  6. I paid my owed taxes ($96.00)in July. The IRS cashed my check on 7/29/2020. Why do I owe $97.72 as shown on the CP14 letter I received today. There should be no penalties nor any interest due. I paid in full 7/11/2020 with check #[redacted] cashed on 7/29/2020.
    Please advise

    • You can go on the IRS website and go to View Your Account to see if they have your correct balance and the letter was just sent before they updated the system with your payment. Or give them a call and they can tell you if you can ignore the letter, if you owed something from a different year, or your payment wasn’t eligible for the extended deadline.

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