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CP14I notice: what it means and what to do
Got an IRS CP14I notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP14I notice freeWhat the IRS says this notice is about
We are informing you that you owe taxes and penalties. This happened because you didn't take out the required minimum amount from your individual retirement arrangement (IRA), or you put too much money into a tax-sheltered account.
What you need to do
Take care of your debt by following these steps:
- Read your notice carefully, it explains how much you owe and how to pay it.
- Pay the amount you owe by the date on the notice.
- Make a payment plan if you can't pay the full amount you owe.
- Contact us if you disagree with the amount.
You can manage your account online
- Check your balance
- Make payments and view payment history
- Create a payment plan
- Choose how you want to receive messages from us
- Look at your tax records
- See who you’ve allowed to help you with your taxes
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
- Individual retirement arrangements and how they work.
- How to create a payment plan that suites your needs.
- How to submit an offer in compromise if you are struggling to pay your debt.
- Reasonable cause and how it may apply to your situation.
- Filing your taxes electronically . Filing online can help you avoid mistakes and find credits or deductions that you may qualify for. In many cases you can file for free.
Common questions
What is a traditional individual retirement arrangement (IRA)?
A traditional IRA is a retirement savings plan where the amount you put in is tax-deductible. The money you put in is usually not taxed until you take it out. A traditional IRA is not a Roth IRA or a SIMPLE IRA.
What is a Roth IRA?
A Roth IRA is a retirement plan where the amount you put in is taxable. But what the amount earns and what you take out is not taxable.
What is a SIMPLE IRA?
A SIMPLE IRA is a retirement plan sponsored by your employer. You put part of your pay into it. Your employer matches a certain amount of what you put in. You don't pay tax on what you and your employer put in until you take it out.
How much do I have to take out from my traditional IRA? (updated Dec. 2, 2024)
You must take out a required minimum distribution (RMD) amount from your IRA starting at age 70½. The amount you have to take out is based on your life expectancy. Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) PDF has a life expectancy chart. You divide the money in your account by the years of your life expectancy. The result is the minimum amount you must take out. You don't have to take out a minimum amount from Roth IRAs.
Are there different types of tax-sheltered accounts?
The different types of tax-sheltered accounts, besides retirement accounts, could include saving accounts for educational or medical PDF expenses.
What is the maximum amount I can contribute to a tax-sheltered account?
The maximum amount depends on the type of account.
What happens if I can't pay what I owe? (updated Dec. 2, 2024)
You can make a payment plan if you can’t pay the full amount you owe. You also have other options like an offer in compromise (OIC) . If you’re facing financial hardship, you may be eligible to ask for a temporary collection delay until your finances improve.
How can I make a payment plan?
Call us at the toll-free number on your notice to talk about payment plans or learn more about them .
What should I do if I disagree with the notice?
Call us at the toll-free number on your notice. Please have your paperwork (such as cancelled checks, amended return, etc.) ready when you call.
Can the penalty for not taking the full required minimum distribution be waived? (added Dec. 2, 2024)
Yes, the penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts and attach a letter of explanation. See the Instructions for Form 5329 .
Am I charged interest on the money I owe?
Not if you pay the full amount you owe by the date on the notice. However, interest adds up on the unpaid amount after that date.
Will I receive a penalty if I can't pay the full amount?
Yes, you'll receive a late payment penalty. Call us at the number on your notice if you can't pay the full amount because of financial problems. We may be able to remove the penalty.
Helpful information
- Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs) PDF
- Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) PDF
- Publication 594, The IRS Collection Process PDF
- Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans PDF
- Publication 970, Tax Benefits for Education PDF
- Form 656-B, Offer in Compromise Booklet PDF
- Form 9465, Installment Agreement Request PDF
- Notice 746, Information About Your Notice, Penalty and Interest PDF