IRS CP14I Notice: How to Handle Missed IRA Withdrawals
Summary:
The IRS CP14I Notice is issued when a taxpayer owes taxes and penalties related to an Individual Retirement Arrangement (IRA). This occurs when a person fails to withdraw the minimum required amount from their IRA or exceeds the legal contribution limits. The notice details the owed amount and provides instructions on how to pay it. If you can’t pay in full, the IRS offers options like payment plans or an Offer in Compromise. Responding quickly can help avoid penalties and interest accumulation.
Discovering that you owe unexpected taxes can be stressful, and an IRS CP14I Notice indicates that you may have missed a required distribution from your IRA or contributed too much to a tax-sheltered account. These situations often lead to penalties and additional taxes, which the IRS outlines in this notice. The CP14I provides details on what you owe and offers guidance on how to pay the amount or resolve the issue if there’s an error. Taking quick action can help prevent further penalties and interest from accumulating. Here’s what you need to know to address it efficiently.
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What is an IRS CP14I notice?
The IRS CP14I Notice is sent to taxpayers when they owe taxes and penalties due to issues related to their IRA or other tax-sheltered accounts. This can occur if you fail to take the Required Minimum Distributions (RMDs) from your traditional IRA after reaching the required age or if you contribute more than the legally allowed amount to your tax-sheltered accounts.
The CP14I Notice outlines the amount you owe, including taxes, penalties, and any applicable interest. It is important to address the notice promptly to avoid additional interest and penalties. The notice will also provide instructions on how to make a payment, set up a payment plan, or dispute the amount if you believe there is an error.
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Why did you receive an IRS CP14I notice?
Receiving an IRS CP14I Notice typically stems from issues related to your retirement or tax-sheltered accounts. One of the most common reasons is failing to take the Required Minimum Distributions (RMDs) from your traditional IRA. If you are over the age of 70½ (or 72, depending on the laws when you reached that age), you are required to withdraw a minimum amount from your IRA each year. Failing to do so results in tax penalties. Another common cause is exceeding the contribution limits for tax-sheltered accounts like an IRA or Health Savings Account (HSA). When you contribute more than the allowed annual limit, it can lead to penalties as well. The CP14I Notice outlines the reason for the penalty and the amount you owe.
Pro Tip
Set up an IRS Online Account to monitor your tax information regularly. This will allow you to view your balances, payment history, and any IRS notices quickly, helping you stay ahead of any potential issues.
How does the IRS CP14I notice affect you?
Receiving an IRS CP14I Notice means you have unpaid taxes and penalties related to your IRA or another tax-sheltered account. If ignored, this can lead to the accumulation of interest and additional penalties. The longer the payment is delayed, the more these costs grow, increasing your overall debt.
Unpaid balances may lead to more serious consequences. The IRS can take legal action, such as garnishing wages or placing a lien on your property, to recover what you owe. These steps can damage your financial standing and make the situation more difficult to resolve.
If the notice is related to over-contributing to a tax-sheltered account, it may affect your future contributions and result in further penalties. Addressing the issue quickly can prevent these complications and keep your accounts in good standing.
What should you do when you receive an IRS CP14I notice?
When you receive an IRS CP14I Notice, acting quickly is crucial to avoid escalating penalties and interest. Follow these important steps to address the notice and resolve any issues efficiently.
Read the notice carefully
The first thing to do is carefully read through the IRS CP14I Notice to understand why you owe taxes or penalties. The notice will provide details such as the exact amount owed, the reason for the penalty, and instructions on how to make a payment. Make sure you fully understand the content, as this will guide your next steps and help avoid mistakes in addressing the issue.
Confirm the information
After reviewing the notice, compare the details with your own records. This includes checking the amounts you contributed to your IRA or tax-sheltered accounts and ensuring you have taken the required minimum distributions (RMDs) if applicable. Discrepancies in these numbers could indicate an error, so it’s important to verify that the information the IRS has is correct.
Make a payment
If everything is accurate and you agree with the notice, pay the full amount owed by the date specified. Prompt payment will prevent the accumulation of further interest or penalties. The IRS provides several payment options, including online payments, checks, and money orders. Meeting the deadline ensures the issue is resolved swiftly without further complications.
Set up a payment plan if necessary
If you are unable to pay the full amount by the due date, the IRS allows you to set up a payment plan. These installment agreements help spread the payments over time, making it easier to manage the debt. You can apply for a payment plan online through your IRS account or by submitting Form 9465, Installment Agreement Request. It’s essential to keep up with the payments to avoid defaulting and facing additional penalties.
Contact the IRS if you disagree
If you believe the notice was sent in error or disagree with the amount owed, contact the IRS as soon as possible. Use the toll-free number listed on the notice to discuss the issue with an IRS representative. Be prepared with supporting documentation, such as bank statements or tax records, to back up your case. If necessary, you may also consider submitting an amended tax return to correct any errors.
Pro Tip
If you miss a required minimum distribution (RMD) from your traditional IRA, address it immediately by contacting a tax professional. Early action can sometimes help reduce penalties through IRS relief programs like the “reasonable cause” exception.
What happens if you ignore an IRS CP14I notice?
Ignoring an IRS CP14I Notice can lead to significant financial and legal consequences. Failing to take action on time may cause the situation to worsen over time, and the IRS has several tools at its disposal to recover the owed amount. Here’s what can happen if you fail to respond to the notice.
Increased penalties and interest
If the debt remains unpaid, the amount you owe will continue to grow. The IRS imposes interest on unpaid taxes from the original due date, and additional penalties are applied the longer the debt remains unresolved. This can make it even harder to settle the amount as time passes.
Wage garnishment
One of the most serious actions the IRS can take is garnishing your wages. This means that a portion of your paycheck may be automatically redirected to the IRS until the debt is fully paid. Wage garnishment can significantly reduce your monthly income, making it difficult to meet other financial obligations.
Seizure of assets
In extreme cases, if the debt remains unpaid for an extended period, the IRS may place a lien on your property or even seize assets, such as bank accounts or real estate, to recover the amount owed. This action can have long-term consequences, including the forced sale of assets to satisfy your tax debt.
Impact on your financial standing
Although the IRS doesn’t directly report to credit bureaus, unresolved tax debts can still affect your financial standing in other ways. For instance, if the IRS places a lien on your property, it can show up on public records, which may indirectly impact your creditworthiness. Additionally, wage garnishment or asset seizure can hinder your ability to secure loans, mortgages, or other forms of credit in the future. Ignoring the notice can have a lasting effect on your financial health, so addressing the issue as soon as possible is essential.
To avoid these outcomes, it’s important to respond promptly and take steps to resolve the issue.
Pro Tip
Always review your IRA contributions each year to ensure they stay within the legal limits. Over-contributing can lead to avoidable penalties, but catching it early gives you time to withdraw the excess and avoid long-term issues.
How to resolve your IRS CP14I notice
Resolving an IRS CP14I Notice can be straightforward if you act promptly and follow the right steps. Addressing the notice quickly will help you avoid accumulating interest, penalties, and further complications. Here’s how you can resolve it effectively:
Make a payment
The simplest way to resolve your IRS CP14I Notice is to pay the full amount owed by the deadline provided on the notice. This will prevent additional interest and penalties from accruing. The IRS offers several payment options, including online payments through your IRS account, checks, or direct debits. Making the payment in full ensures that the issue is resolved promptly.
Set up a payment plan
If paying the full amount at once isn’t possible, the IRS offers payment plans that allow you to spread the cost over a more manageable period. You can apply for a payment plan online through your IRS account or by submitting Form 9465, Installment Agreement Request. Monthly payments can help you avoid financial strain while addressing your tax obligations. It’s important to ensure that payments are made on time to avoid defaulting on the plan.
Request an Offer in Compromise
If you cannot pay the full amount due to financial hardship, you may be eligible for an Offer in Compromise (OIC). This program allows you to settle your tax debt for less than the full amount owed, based on your financial situation. To apply for an OIC, you’ll need to submit Form 656 and provide detailed financial information. The IRS will review your case and decide whether to approve a reduced payment. Keep in mind that qualifying for an OIC requires proving that paying the full amount would create undue financial hardship.
Dispute the notice
If you believe the IRS CP14I Notice was issued in error or that the amount owed is incorrect, you have the right to dispute the notice. Gather any supporting documents, such as contribution records or prior tax returns, and contact the IRS directly using the phone number provided on the notice. Be prepared to provide documentation that supports your case. If necessary, you may also file an amended tax return to correct any errors.
Steps for creating a payment plan for your IRS CP14I notice
If you can’t pay the amount owed in full, the IRS offers a payment plan option. Here’s how to set it up:
- Log into your IRS Online Account: Visit the IRS website and sign in to your online account to view your balance and payment options. This is the quickest way to manage your account and apply for a payment plan.
- Choose a payment plan option: The IRS offers short-term and long-term payment plans, depending on how much you owe and your ability to pay. Short-term plans are typically for smaller balances, while long-term plans allow more flexibility for larger debts.
- Submit Form 9465: If you prefer to set up a payment plan by mail, complete and send Form 9465, Installment Agreement Request. Ensure all the information is correct and send it to the address listed in the form’s instructions.
- Pay monthly: Once your plan is set up, make your monthly payments on time as agreed. This will help you avoid defaulting on the plan and accumulating additional interest or penalties.
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Frequently asked questions
What should you do if the amount on the IRS CP14I Notice is incorrect?
If the amount listed on the IRS CP14I Notice is incorrect, it’s important to gather documentation supporting your claim. This may include bank statements, contribution records, or tax returns that prove your actual contribution or distribution amounts. Contact the IRS using the phone number provided on the notice to discuss the discrepancy. Be prepared to submit supporting documents and, if necessary, file an amended tax return.
Can you appeal the penalties listed on the IRS CP14I Notice?
Yes, it’s possible to appeal the penalties listed on the IRS CP14I Notice. If you believe there was an error or have reasonable cause, you can request penalty relief. The IRS may grant relief for various reasons, such as errors made by a tax advisor or financial hardship. To start the process, contact the IRS and explain why you believe the penalties should be reduced or eliminated.
What happens if you don’t take the required minimum distributions (RMDs)?
Failing to take the Required Minimum Distributions (RMDs) from a traditional IRA can result in a significant penalty. The IRS imposes a 50% tax penalty on the amount that should have been withdrawn. This penalty is applied in addition to regular taxes on the withdrawal. Receiving an IRS CP14I Notice often means there’s a failure to meet RMD requirements, so acting quickly to resolve the issue can help mitigate additional penalties.
Can you use the IRS online account to resolve a CP14I Notice?
Yes, the IRS provides an online portal where taxpayers can view and manage their account, including resolving a CP14I Notice. By logging into the IRS Online Account, taxpayers can see their balance, make payments, view payment plan options, and access tax records. This is often the quickest and easiest way to address any issues related to the notice, especially if payments or adjustments need to be made.
What happens if you contribute too much to a tax-sheltered account?
Exceeding contribution limits for tax-sheltered accounts like IRAs or Health Savings Accounts (HSAs) can result in penalties. If a taxpayer contributes more than the allowed amount, they may face an excess contribution penalty, which is typically 6% of the excess amount for each year the excess remains in the account. The IRS CP14I Notice will indicate if these penalties are applicable, and the taxpayer will need to withdraw the excess contributions or correct the issue to avoid further penalties.
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 CP14I Notice is sent when you owe taxes and penalties related to your IRA or other tax-sheltered accounts.
- Failure to take Required Minimum Distributions (RMDs) or exceeding contribution limits are common reasons for receiving this notice.
- It is important to respond promptly to avoid accumulating interest and penalties.
- You can pay the amount owed, set up a payment plan, or dispute the notice if you believe there is an error.
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