The CP14I is a variant of the standard CP14 balance due notice that includes additional detail about interest calculations. The underlying message is the same — you owe taxes — but the CP14I breaks down how interest was computed, including the applicable rate and the accrual period.
Understanding the Interest
IRS interest is calculated at the federal short-term rate plus 3 percentage points, compounding daily. The rate changes quarterly. The CP14I shows the rate applied and the period over which interest accrued. This information is useful for verifying the IRS's math and for estimating future interest accrual if you can't pay immediately.
Same Response Options
Your options are identical to the standard CP14: pay in full, set up an installment agreement, request an extension, or dispute the balance if it's incorrect. The interest detail doesn't change your rights or deadlines. It just gives you more information about the computation.
If you need help with a CP14I, call us at (813) 229-7100.