What This Notice Means

When a taxpayer is held hostage or wrongfully detained, the IRS pauses collection during that time and for 180 days after release. The CP34 tells you that pause is over and that you still have an unpaid balance on one of your tax accounts.

Your balance includes the original tax, interest, and any penalties that apply outside the suspension period. Interest and applicable penalties keep running until you pay in full.

What to Do

  • Read the notice. It shows what you owe and your payment options.
  • Pay the balance if you can. Online payment gives you instant confirmation.
  • If you can't pay in full, pay what you can now to cut down on interest and penalties.
  • Apply for a payment plan, consider an offer in compromise, or ask for a temporary collection delay if you're in financial hardship.

The amount on the notice may already be out of date because interest is added daily. Your IRS Online Account shows the current figure.

If You Had a Payment Plan Before

A plan you had before your captivity may still be in place, or it may need updating. If it defaulted while you were held, you may be able to reinstate it or request a new one through the IRS Online Payment Agreement tool. Check your Online Account or call the number on your notice.

If a Tax Lien Was Filed Before

A Notice of Federal Tax Lien filed before your captivity may still be in place. If you pay the balance in full, the IRS will release the lien.

About Penalties

The IRS didn't charge penalties while you were held captive and for 180 days after release. Penalties outside that window, such as failure to pay or failure to deposit, may still apply. You can ask for penalty relief based on reasonable cause for those.

Other Issues

If your return needs a correction, file Form 1040-X. If you think someone used your information while you were away, report identity theft to the IRS, file Form 14039 if needed, review your online account for unfamiliar activity, and respond to any other notices you got. Collection may be paused while the IRS reviews an identity theft case.

Don't Wait

Any refunds will keep being applied to balances on other tax years until they're paid, even if you have a payment plan. The longer the balance sits, the more it grows.

If you received a CP34 and need to resolve the balance after your release, call us at (813) 229-7100. We can set up a plan or pursue penalty relief for you.