IRS Notice CP14 – Case Study

We will understand what IRS Notice CP14 is and go through a real IRS Notice CP14 that a reader sent to me – understand each section before deciding a future course of action.

A reader sent me the attached asking for my interpretation of the notice. (It is an actual notice that came in today, I have deleted all the PII (Personally identifiable information) – name, address, and social.

What is IRS Notice CP14?

IRS Notice CP14 Albert EinsteinUnderstanding IRS Notice CP14 is pretty straight forward, as it is with most things when someone tries to explain it in simple English. There are two reasons why ‘some’ professionals do not explain things in a simple manner – sometimes they use arcane esoteric language purposefully so that they can charge you a lot of money or they don’t understand the subject well enough.

IRS Notice CP14 is an automated system notice that one usually gets after about 3 – 4 weeks from the date of filing your tax returns. In this case, the reader filed the taxes for 2014 on 10/15/2015 and the Notice date is 11/16/2015 (so about 4 weeks).

Simply stated – IRS Notice CP14 states that the taxes you owed (per your calculations) have not been paid yet. There is underpayment of taxes – tax reported on your return is more than the payments that have been made to your account. This usually is accompanied by interest and penalty charges too.

Payments that have been made to your account

This is not always the same as the payments that you have made. Continue reading