CP 14 IRS Tax Notice: Changes to Tax Return, Balance Due

The reason a taxpayer would receive a CP14 IRS tax notice is not because of a mathematical error. This form shows you the amount the IRS has determined a taxpayer has underpaid. The middle of the form explains the amount you reported in taxes, the IRS tax credits applied and the amount of underpayment in question.

The first thing that should be done is checking the form for reporting accuracy. Often times a misapplied payment is the result of there being a balance due. If the amount of tax you paid differs from the ones the IRS shows, they will need information from you to research the discrepancy. Once the payment is discovered it will be applied and the penalties, fines and interest will be removed from your account.

If your records concur with the IRS records, then you are responsible for paying the amount due on the day it is due. If you are not able to pay the amount in full by the due date listed, you can expect the IRS to assess penalties and interest to your account. Then a viable alternative would be to request an IRS installment agreement, which will allow you to pay the debt back in smaller amounts over a period of time.

Whatever course of action is chosen, is dependent upon the reason for underpayment. Your tax attorney will need to contact the IRS on your behalf, at the number listed on your notice to address the issues regarding the underpayment in dispute. This is the first step in resolving the underpayment issue.

There are many reasons why an underpayment may have been made. If you received this notice because of a missing payment in question, have your tax attorney contact the IRS and provide them with payment verification for immediate resolution. Make the IRS representative aware of the amount of the missing payment, and give them time to research their records. If they are unable to locate the missing payment information in a timely manner, they may need the encoding information from the back of your check, if this is the method you used to pay the account. They will make a note of the relevant information and cease further collection activity until the situation is resolved. In many cases, it is best to have your tax attorney furnish the IRS with a clear photocopy of the check or money order you used to pay this account with.

You may have received a notice because the amount on your payment does not match the amount shown on the notice. In this circumstance again, it is best to have your tax attorney contact the IRS and furnish them with a copy of the canceled check or a copy of any information or documentation, that can be used to back up proof of payment.

If you received a notice because of an amended return showing a decrease of tax debt, then your tax professional will again need to contact the IRS for confirmation that this return was processed after the notice was issued.

If your notice shows a difference between the total tax amount than the tax that was reported, again this is a situation that requires your tax attorney to contact the IRS on your behalf. The IRS has pre-printed address labels that identify a code. This code shows the tax period for the particular return in question. If you used a previous photocopy of the return in question, it may have been the result of a clerical error on the part of the IRS.

If you receive any tax notices after paying off your tax debt in full, simply having your tax attorney call the IRS should work out this problem. The tax attorney simply needs to verify that the payment was actually received and processed. Most times an issue with a CP14 tax notice can be resolved with minimal headache. The easiest way to resolve any problems is to have your tax attorney call the IRS and verify information and your account should be taken care of.