What this notice means
The IRS's records show you have unpaid tax. Your notice lists the amount, the date to pay by, and your ways to pay.
If you pay the full amount by that date, the IRS says you won't be charged more interest. Anything still unpaid after that date keeps building interest, and a late payment penalty applies to the part you can't pay.
Why you got it
- Your tax return showed tax due, and it wasn't paid in full.
- A final decision set your correct tax, and it left you with a balance.
What to do now
- Go over the notice closely. It lists the amount due and your ways to pay.
- Pay the full amount by the due date on the notice if you can.
- If you can't pay it all, apply for a payment plan, such as an installment agreement. You can apply online.
- If paying would cause a financial hardship, the IRS may be able to delay collection until your situation improves. You can also look into an offer in compromise.
- If you disagree, call the phone number listed in your notice's IRS Help section, with papers like canceled checks or an amended return on hand.
If you don't respond
If you don't pay, the IRS usually follows up with reminder notices, such as a CP501. Interest and penalties keep adding up until you pay in full.
Questions people ask
Will I be charged interest?
Not if you pay the full amount by the date on the notice. Any amount still unpaid after that date builds interest.
What if I can't pay the whole amount?
Call the number on your notice or apply online for a payment plan, and do it by your due date. A late payment penalty will apply to the unpaid part.
I live in a disaster area. Does this apply to me?
If your address of record is in a federally declared disaster area, you should have received a CP14C. It means you get extra time to file and to pay the amount on your CP14, and that extra time is automatic, so there's no need to call.