CP14I is a balance due notice. You owe taxes and penalties because you didn't take the required minimum amount out of your individual retirement arrangement (IRA), or you put too much money into a tax-sheltered account.

Tax-sheltered accounts include retirement accounts and can also include savings accounts for education or medical expenses. The maximum contribution depends on the type of account.

What to Do

  • Read the notice carefully. It explains how much you owe and how to pay.
  • Pay the amount you owe by the date on the notice.
  • If you can't pay in full, set up a payment plan.
  • If you disagree with the amount, call the number on your notice. Have your paperwork ready, such as account statements, cancelled checks, or an amended return.

Missed Required Minimum Distributions

You must take required minimum distributions (RMDs) from a traditional IRA once you reach the required age. The amount is based on your life expectancy. Publication 590-B explains how to figure it. Roth IRAs don't have required minimum distributions for the owner.

The penalty for a missed or short RMD may be waived if you show the shortfall was due to reasonable error and you are taking reasonable steps to fix it. To ask for relief, file Form 5329 and attach a letter of explanation. Take the missed distribution as soon as you can so your request shows the problem is being remedied.

Excess Contributions

If the notice is about putting too much into an account, check your contribution records against the limit for that account type. Publications 590-A (IRAs), 969 (health savings accounts), and 970 (education benefits) cover the rules.

Interest and Penalties

You won't be charged interest if you pay the full amount by the date on the notice. After that, interest adds up on the unpaid amount. You'll also be charged a late payment penalty. If financial problems keep you from paying in full, call the number on your notice. The IRS may be able to remove the penalty.

If You Can't Pay

A payment plan is the usual answer. An offer in compromise may be an option, and if you're facing financial hardship you can ask for a temporary delay in collection.

If you received a CP14I and need help with the balance or a penalty waiver, call us at (813) 229-7100.