USTaxPenaltySaverWhat Is a CP14 Notice?
A CP14 is the very first balance due notice the IRS sends to taxpayers. You will receive one when you file a federal tax return that shows you owe money, but you did not include payment with the return. It is not an audit notice and does not mean you did anything wrong beyond having an unpaid balance.
The notice lists the tax year in question, the amount of tax owed, any penalties that have been assessed (typically a failure-to-pay penalty of 0.5% per month), accrued interest, and the total balance due. As of 2026, the IRS charges interest at 7% per year (compounded daily) on unpaid balances, which translates to roughly $1.92 per day on every $10,000 owed.
The CP14 also includes a payment deadline. For balances under $100,000, you typically have 21 days from the notice date. For balances of $100,000 or more, you get 30 days. Missing this deadline triggers additional penalties and interest.
Why Did I Get This Notice?
The most common reason is straightforward: you filed your tax return but did not pay the full amount owed. This can happen if you had insufficient withholding from your paycheck, did not make enough estimated tax payments, had a life event that changed your tax situation (like selling property or withdrawing from retirement accounts), or simply could not afford to pay when you filed.
Sometimes a CP14 arrives unexpectedly because of a math error the IRS corrected on your return, resulting in a higher balance. In this case, the notice should include an explanation of the adjustment. Review it carefully because the IRS does make mistakes.
If you do not recognize the tax year or amount, it is possible someone filed a fraudulent return using your information. Contact the IRS Identity Protection Specialized Unit at 800-908-4490 if you suspect identity theft.
Step-by-Step: What to Do Right Now
Step 1: Do not panic. A CP14 is the mildest IRS notice. It is simply a bill, not an enforcement action. You have time and options.
Step 2: Verify the information. Check the tax year, filing status, and income reported. Compare the notice amount against your tax return. Use our free penalty calculator to verify the IRS math on any penalties and interest charges.
Step 3: Check your FTA eligibility. If you have not had any penalties in the prior 3 tax years, you likely qualify for First-Time Abatement, which can remove the failure-to-pay penalty entirely. Use our FTA eligibility checker to find out in 60 seconds.
Step 4: If you can pay the full amount, pay it by the deadline on the notice to stop interest from accruing. Pay online at IRS.gov/payments using Direct Pay (free, from bank account) or by debit/credit card (processing fee applies).
Step 5: If you cannot pay in full, do not ignore the notice. Apply for a payment plan immediately. You can apply online at IRS.gov for an installment agreement. If you owe $50,000 or less, the online process is streamlined and does not require financial disclosure.
Step 6: If you disagree with the amount, call the IRS at the number on your notice (typically 800-829-1040) or write to the address on the notice within 30 days. Keep a copy of everything you send.
How to Check if the Amount Is Correct
The IRS processes millions of returns and makes errors more often than you might think. Start by pulling out your copy of the tax return for the year shown on the notice. Compare the tax amount on line 37 (Form 1040) with the amount the IRS says you owe.
Next, check the penalty calculations. The failure-to-pay penalty is 0.5% of the unpaid tax for each month (or partial month) the payment is late, up to 25%. Interest is the federal short-term rate plus 3 percentage points, compounded daily. For 2026, this is 7% annually.
Our free IRS penalty calculator does all of this math for you. Enter your tax amount, the due date, and when you plan to pay, and it will show you the exact penalties and interest. If the IRS number is different from what the calculator shows, you may have grounds to dispute the notice.
Your Relief Options
First-Time Abatement (FTA): If you have a clean penalty record for the prior 3 tax years, you can get the failure-to-pay and failure-to-file penalties removed entirely. This is the easiest and most common form of relief. You can request FTA by phone (800-829-1040) or by mail (Form 843).
Reasonable Cause: If you had a legitimate reason for not paying on time, such as a serious illness, natural disaster, death in the family, or reliance on incorrect professional advice, you can request penalty abatement based on reasonable cause. You will need to explain what happened and provide supporting documentation.
Installment Agreement: If you cannot pay the full balance, you can set up a monthly payment plan. For balances of $50,000 or less, you can apply online with no financial documentation required. Monthly payments are based on the balance divided by 72 months.
Offer in Compromise: If you truly cannot afford to pay the full tax debt, you may qualify for an Offer in Compromise (OIC), where the IRS agrees to accept less than the full amount. This is harder to qualify for but worth exploring if you are in financial hardship.
Currently Not Collectible: If paying would create a genuine financial hardship (you cannot afford basic living expenses), you can request CNC status, which pauses IRS collection activity. Interest continues to accrue, but you get breathing room.
Deadlines You Cannot Miss
Payment deadline: 21 days from the notice date (30 days if you owe $100,000+). Missing this adds more penalties and interest.
Dispute deadline: If you believe the notice is wrong, respond within 60 days. After 60 days, the IRS may begin collection actions.
Installment agreement: Apply as soon as possible. While your application is pending, the IRS generally will not take collection action. You can apply online at IRS.gov/opa.
Statute of limitations: The IRS generally has 10 years from the date of assessment to collect a tax debt (the Collection Statute Expiration Date, or CSED). After that, the debt expires. However, certain actions (like filing for bankruptcy or leaving the country) can extend this period.
Common Mistakes to Avoid
Ignoring the notice. This is the worst thing you can do. The IRS collection process escalates automatically: CP14 leads to CP501, then CP503, then CP504 (final notice before levy). Each step makes resolution harder and more expensive.
Paying with a credit card without calculating the cost. Credit card payments incur a 1.85-1.98% processing fee, and then you pay credit card interest rates (often 20%+). An IRS installment agreement at 7% interest is almost always cheaper than credit card debt.
Not checking FTA eligibility. Many taxpayers pay penalties they did not have to. If you have a clean 3-year history, FTA can save you hundreds or thousands of dollars. Always check before paying.
Calling the IRS without preparation. If you call 800-829-1040, have your notice, tax return, and Social Security number ready. Know what you are going to ask for before calling. The average hold time is 20-30 minutes, and you want to make the call count.
Hiring an expensive professional for a simple case. If your CP14 is for a straightforward balance due under $10,000 and you qualify for FTA, you do not need to pay a CPA $300+ to handle it. Use our free tools to check eligibility and generate your request, then call the IRS yourself.