IRS CP14H Notice: How to Handle Shared Responsibility Payment
Summary:
The IRS sends the CP14H Notice when you owe a Shared Responsibility Payment (SRP) for not having minimum essential health coverage in a specific tax year. This payment applies to tax years before 2019, under the Affordable Care Act. Even though the SRP no longer applies after 2018, unpaid amounts from earlier years must still be collected. The notice explains the balance owed and outlines steps for resolving it, including payment options and ways to dispute the notice if needed.
Receiving a CP14H Notice can be alarming, especially when it involves a balance owed to the IRS. This notice informs you that you owe a Shared Responsibility Payment (SRP) because you or your dependents didn’t have health insurance during a tax year before 2019. Although the SRP no longer applies for tax years after December 31, 2018, any unpaid amounts from earlier years remain due. By understanding why you received this notice and how to resolve it, you can avoid added interest and settle the balance promptly.
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What is the IRS CP14H notice?
The IRS CP14H Notice informs taxpayers that they owe a Shared Responsibility Payment (SRP). This payment is a penalty for not having minimum essential health coverage during a specific tax year before 2019. Under Internal Revenue Code Section 5000A, individuals and families were required to have health insurance or pay the SRP.
The notice includes the amount owed and the payment deadline. Even though the SRP was reduced to zero starting in 2019, unpaid balances for prior years remain enforceable. The IRS cannot place a lien or levy on your property for unpaid SRP, but they can reduce your tax refunds or credits to collect the amount.
Why did you receive the IRS CP14H notice?
You received the IRS CP14H Notice because you or one of your dependents did not have minimum essential health coverage for some or all of the tax year listed. This notice informs you of the SRP balance and requests payment. It applies to tax years before 2019, when the Affordable Care Act required individuals to have health coverage or pay a penalty.
Even though the SRP is zero for post-2018 tax years, unpaid SRP amounts from earlier years still need to be resolved. The IRS expects you to pay the balance or arrange a payment plan.
Pro Tip
Always review the details in your IRS CP14H Notice thoroughly. Understanding the amount due and the reason for the Shared Responsibility Payment can help you address any questions or concerns effectively.
How the IRS CP14H notice affects you
Receiving an IRS CP14H Notice can affect your finances in several ways:
Payment obligation
You must pay the amount listed in the notice by the due date to avoid interest charges. While the IRS cannot place a levy on your property or impose failure-to-pay penalties for SRP, interest will accumulate on any unpaid balances.
Potential refund offsets
If you don’t pay the SRP, the IRS may deduct it from future tax refunds or credits. This means that if you owe the SRP, your refund could be smaller than expected.
No penalties or liens
The SRP is not subject to liens or penalties like other unpaid taxes. However, it’s important to resolve the notice promptly to prevent additional interest from building up.
Pro Tip
If you believe you qualify for an exemption from the Shared Responsibility Payment, gather your supporting documents and submit them promptly to the IRS. This can help avoid unnecessary payments and disputes.
What should you do when you receive the IRS CP14H notice?
Upon receiving the IRS CP14H Notice, it’s essential to act quickly. Here’s what you need to do:
Review the notice carefully
Make sure you understand the reason for the SRP charge and the amount due. The notice will explain how much you owe and provide steps for payment. Understanding the details will help avoid confusion and ensure compliance with IRS instructions.
Check your records
Review your health coverage information for the tax year in question. Ensure you didn’t qualify for an exemption from the SRP. Having accurate records will help you decide if the charge is valid or if you need to dispute it.
Pay the balance
The quickest way to resolve the issue is to pay the amount owed in full. The notice will include instructions for making payments online or by mail. Paying promptly will prevent interest from accumulating on the unpaid balance.
Consider a payment plan
If you cannot pay the full amount by the deadline, consider setting up a payment plan with the IRS. This option allows you to pay the balance over time and avoid additional interest.
Dispute the notice if necessary
If you believe the SRP amount is wrong, contact the IRS to dispute it. Collect any relevant documentation, such as health insurance records, canceled checks, or an amended return. Having strong evidence will support your case and help resolve the issue smoothly.
Pro Tip
Consider setting up a payment plan with the IRS if you cannot pay the full balance. This option allows you to manage your payment over time and avoid accumulating interest on the unpaid amount.
How to resolve disputes with the IRS CP14H notice
If you believe the IRS CP14H Notice contains errors or that you were not responsible for the Shared Responsibility Payment, you have options to challenge the notice. Here’s how you can proceed:
1. Contact the IRS if you disagree with the IRS CP14H notice
If you disagree with the SRP amount on your notice, you can contact the IRS using the phone number listed on the notice. Before calling, make sure you have your tax records, health insurance documents, and any other supporting information ready.
2. Submit a written response
You also have the option to write to the IRS to dispute the SRP amount. Include the CP14H Notice, a detailed explanation of why you believe the amount is incorrect, and supporting documents such as health coverage proof or a corrected tax return.
3. Follow up on your dispute
It’s important to follow up with the IRS to ensure they have received your dispute and that the issue is being reviewed. Keep copies of all correspondence and documents for your records.
What happens if you ignore the IRS CP14H notice?
Ignoring an IRS CP14H Notice can lead to several complications that may affect your financial situation. First, interest will begin to accrue on the unpaid Shared Responsibility Payment (SRP) after the due date specified on the notice. This additional interest will increase the total amount owed, making the debt harder to manage over time.
Additionally, the IRS has the authority to reduce future tax refunds or credits to offset the outstanding SRP amount. This means that if you are expecting a tax refund, it could be significantly smaller or even eliminated entirely if the SRP remains unpaid. This process of offsetting can catch many taxpayers by surprise, leading to unexpected financial shortfalls.
If the balance continues to go unpaid, the IRS will not remain silent. You will likely receive further communication in the form of reminders and collection notices. Over time, if the issue remains unresolved, the IRS may escalate the situation, potentially sending the unpaid SRP amount to a collections agency. This can add another layer of complexity and stress to an already challenging situation.
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Frequently asked questions
What is the difference between the shared responsibility payment (SRP) and other tax penalties?
The shared responsibility payment (SRP) is a penalty specifically imposed on taxpayers who did not maintain minimum essential health coverage during certain tax years before 2019, as required by the Affordable Care Act (ACA). Unlike other tax penalties, the SRP is not subject to federal liens, levies, or failure-to-pay penalties. However, the IRS can offset unpaid SRP amounts against future tax refunds. The SRP was reduced to zero for months beginning after December 31, 2018, but unpaid SRP amounts from prior years are still collectible.
Can the IRS charge interest on unpaid shared responsibility payment (SRP) amounts?
Yes, interest can accrue on unpaid shared responsibility payment (SRP) amounts after the due date specified on the IRS CP14H notice. If the full balance is paid by the date shown, no interest will be applied. However, failing to pay the SRP by that deadline will result in interest accumulating on the unpaid balance, increasing the total amount owed over time.
What happens if the IRS CP14H notice contains an error?
If the IRS CP14H notice contains an error, such as an incorrect SRP amount or inaccurate details about your health coverage, it is important to contact the IRS immediately. You can dispute the notice by calling the phone number provided on the notice or sending a written response with supporting documentation, such as proof of health insurance coverage, canceled checks, or an amended return. Correcting the error as soon as possible helps prevent additional interest charges or refund offsets.
Is it possible to set up a payment plan for the SRP balance on the IRS CP14H notice?
Yes, if you cannot pay the shared responsibility payment (SRP) balance in full by the due date, the IRS offers the option to set up a payment plan. This allows you to pay off the SRP amount over time. To request a payment plan, you can use Form 9465 (Installment Agreement Request) or apply online through the IRS’s payment portal. It’s important to keep in mind that while the IRS does not impose penalties on unpaid SRP, interest will continue to accrue on the outstanding balance until it is fully paid.
Can you get an exemption from the shared responsibility payment (SRP)?
Yes, it is possible to qualify for an exemption from the shared responsibility payment (SRP) if certain conditions are met. Some exemptions include experiencing financial hardship, membership in certain religious sects, or living in a foreign country for a full year. If you believe you qualify for an exemption, it is necessary to provide the required documentation when filing your tax return. However, the IRS CP14H notice is typically issued when no exemption was claimed or approved for the tax year in question.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- The IRS CP14H Notice is issued when you owe a Shared Responsibility Payment for not having health coverage in certain tax years before 2019.
- You must pay the amount by the due date to avoid additional interest. The IRS cannot apply penalties, liens, or levies for unpaid SRP.
- If you disagree with the SRP amount, you can contact the IRS or write a letter disputing the notice with supporting documentation.
- Ignoring the notice can lead to interest accumulation and deductions from future tax refunds.
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