Irs.Gov/Cp14 is a form of tax debt resolution. The main thing that CP14 aims to do is to ensure that the tax debt of the taxpayer owes is reduced. This is due to the fact that many times when a person files for bankruptcy, they are not actually in financial dire straits, they simply filed because they did not have enough money to pay their bills. IRS CP14 provides hope and assistance to those who cannot pay their taxes on time. There are a few things that happen with IRS CP14. If you are not sure if the balance is greater than the penalty for failure to file a return, then you need to call your tax servicer and request a copy of your back tax year. If your balance is more than the penalty or there is still money owing, then the IRS will help you to settle the balance through an offer in compromise.\
An offer in compromise is where you pay an amount less than what you owe to the IRS. This could be a lump sum, monthly payments or a combination of both. It is important to understand that this is a compromise and it does not eliminate the debt. You are still responsible for the full balance owed on the tax year, plus the balance owed on the Offer In Compromise. Once you receive an Offer In Compromise, you can either accept it and send in the money, or refuse it and explain why the balance is so high and how you will pay the difference in full. You must respond to the IRS within a certain amount of time or the agency will begin collection efforts. If you choose to refuse the offer in compromise, you will need to take action on the outstanding balance owed before the specified deadline. Failure to pay your tax obligations by the deadline causes the interest to accrue and continues the action against you.
The IRS will only accept a payment plan if you meet certain requirements. You will need to be able to prove that you are unable to pay the full amount because of a financial hardship. Income and assets verification is required along with verification of the tax debt and the amount owed on the Offer In Compromise. If you do not have enough income or assets to qualify for the penalty forgiveness, you could qualify for a deferment or extension of the terms of your IRS CP14 repayment. If you fit into one of these categories and fall behind on your taxes, the IRS will provide you with several options for getting caught up. Your default results in a Notice of Federal Tax Lien. If you continue to fail to make timely payments, the IRS will issue a final Notice of Federal Tax Lien and your federal tax debt will increase.