IRS Notice CP14IA (Installment Agreement (IA) Accounts)
CP14IA is a notice that the IRS started using in January 2021. The agency sends this notice to taxpayers who have established or applied for payment plans, and this notice has replaced the standard CP14 notice in these situations.
Why Did the IRS Create CP14IA?
CP14 is a balance due notice, and CP14IA is a balance due notice for taxpayers with installment agreements. The IRS created the CP14IA notice to reduce confusion for taxpayers.
What to Do If You Receive Notice CP14IA
Your CP14IA notice should note how much you owe the IRS, it should outline the terms of your payment agreement, and it should tell you if you need to take additional steps to complete your payment plan agreement. Here is what you need to do if you receive this notice:
- Make payments on your payment plan as outlined in your installment agreement.
- Note that if you don't make payments on time, your agreement may be canceled.
- Consider setting up automatic payment withdrawal so you don't miss any payments.
- Continue to file all tax returns when due — the IRS can cancel your payment agreement if you don't file your returns.
- Pay all new tax liabilities you incur — the IRS can also cancel your payment plan if you don't pay new tax liabilities.
- Provide the IRS with any information requested in notice CP14IA.
The IRS often sends notice CP14IA when you need to complete additional paperwork to set up your installment agreement. Make sure that you submit this paperwork by the deadline noted on the letter. Otherwise, you risk losing your payment arrangement.
What Forms Do I Need to Complete My IRS Payment Plan Agreement?
Notice CP14IA will tell you if you need to submit additional paperwork to complete your installment agreement. This notice often contains a request to file missing tax returns or complete Form 433-F (Collection Information Statement).
As indicated above, you need to stay on top of your current tax filing deadlines if you want to get your payment plan approved. Missing filing obligations can also cause existing payment plans to go into default. If CP14IA says you need to file missing returns, contact a tax professional and get those returns submitted as soon as possible.
If CP14IA requests Form 433-F, you should also submit that form as soon as you can. Form 433-F requests information about your bank accounts, lines of credit, credit card debt, investments, real estate, and other assets. It also asks about your income and monthly bills. The IRS uses this information to decide whether or not to approve your payment plan.
Frequently Asked Questions About IRS Installment Agreements
Taxpayers usually only receive notice CP14IA if they have established or applied for a payment plan. If you received notice CP14IA, you may have questions about your installment agreement. Here are answers to some of the most frequently asked questions we hear about installment agreements:
How do I find out how much I owe on my IRS payment plan?
Notice CP14IA should show how much you owe. Alternatively, you can set up an online account with the IRS to check the total amount of your tax liability.
How much are my IRS installment plan payments?
The IRS has an online payment agreement application, and when you create an account, you can check your balance and the number of your payments.
Can I change my payment plan?
You can also make changes to your payment plan using the IRS's online payment agreement tool. You can request to change your monthly payments, your payment due date, or the account you use for direct debit. If you have defaulted on a payment agreement, you can also use the online application to try to reinstate your agreement.
What if I can't afford to make payments on my IRS installment agreement?
If your financial situation has changed and you can no longer afford to make payments on your account, you can apply for hardship status. To obtain hardship status, you need to provide the IRs with detailed information about your financial situation that shows you cannot afford to pay.
Hardship status does not erase your tax liability. It just temporarily stops collection activity on your account. Try to make your payments as scheduled until your hardship status has been approved.
What if the information on notice CP14IA is wrong?
If the information on the CP14IA is incorrect, you should start an appeal with the IRS. If you believe the incorrect information is due to identity theft, you should contact the agency directly. You should also take other steps to secure your identity, such as contacting the credit bureaus to lock your credit.
Why is interest accruing on my tax balance?
Even if you have a payment plan, interest and penalties will continue to accrue on your account. However, the interest and penalties assessed on tax liabilities that are being paid through an installment agreement are typically less than the interest and penalties you will face if you are just ignoring your tax liability.
If you have additional questions about CP14IA or your IRS payment plan, consider reaching out to a tax professional. They can answer your questions and help you deal with the IRS.
What Does the QR Code on Notice CP14IA Do?
In 2021, the IRS began adding QR codes to notice CP14IA as well as other notices. The QR codes will open part of the IRS's website when you scan them with the camera of a smartphone. Your letter should tell you which part of the IRS's website is linked to each QR code.
Get Help Dealing With CP14IA
Dealing with the IRS can be confusing, and taxpayers who navigate the situation on their own often end up paying more tax liability than they should. If you have received CP14IA or if you have other concerns, reach out to a tax professional today.
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