MILLIONS OF IRS CP14 NOTICES WILL BE ISSUED BY MAIL IN JUNE

Jackson Hewitt Tax Pros are Ready to Help

JERSEY CITY, N.J., June 7, 2023 /PRNewswire/ -- Beginning in June, the IRS will send CP14 notices by mail to inform millions of taxpayers of their balance due for unpaid taxes. The notice contains important tax information, and the Tax Pros at Jackson Hewitt Tax Services^® encourage taxpayers to review the notice carefully and respond as soon as possible to avoid additional interest and penalties.

The CP14 notice will outline how much is owed to the IRS as well as how to pay and payment plan options. If the balance due is not paid by the due date issued on the note, interest will begin to accrue, and penalties will be assessed dating back to the due date of the tax return. Furthermore, if the balance due is left unpaid the IRS can act by filing a Notice of Federal Lien. In doing so, the IRS would begin to mail a series of reminder notices to request payment before starting enforced collection.

"It can be stressful to receive a letter from the IRS, and it shouldn't be ignored. Penalties are assessed monthly, and the interest is compounded daily, which will inevitably increase your bill fast," said Mark Steber, Chief Tax Information Officer at Jackson Hewitt. "The sooner you open and review the notice, the better."

There are several options for taxpayers who receive a CP14 notice, including:

• Pay the entire tax balance in full. The cost of not paying in full is the current interest rate (based on the federal interest rate and adjusted quarterly) plus a 0.5% failure to pay penalty each month on the tax balance. Roughly, that equates to 10% added cost annually if the taxpayer doesn't pay (5% interest rate as of 5/3/2023, plus 12 months at 0.5%, or 11% in total).
• Get an extension to pay in full. For taxpayers who just need more time than what's included on their CP14 notice, they can work with the IRS to get an extension to pay in agreement with the IRS. The IRS allows a free extension to pay the balance due up to 180 days. The IRS calls this a short-term payment agreement.
• Enter into a payment plan with the IRS. This is an option for most taxpayers and is the most common option for those who receive a CP14 notice. There is a fee to enter into a payment plan and it varies based on financial status and the duration of the plan.
• Other options for those in financial hardship. For taxpayers who cannot afford to pay in full immediately, with an extension, or from a payment plan, there are other options to consider, including temporary not collectible status or a tax settlement, called an Offer in Compromise.

"The bright side is you don't have to figure this out on your own. Whether your tax issue is big or small, visit your neighborhood Tax Pro to help solve your tax problem with a personalized plan that works for you," Steber adds.

For those that missed the deadline or need tax help, schedule an appointment at a Jackson Hewitt office that offers extended and flexible hours. Visit jacksonhewitt.com/officelocator and meet with a local Tax Pro today.

About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an innovator in the tax industry, with a mission to provide its hard-working clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead and stands behind its work with its Maximum Refund Guarantee and Lifetime Accuracy Guarantee^® (restrictions apply, see Jackson Hewitt's website for more details). Jackson Hewitt has more than 5,600 franchise and company-owned locations nationwide, including 2,700 in Walmart stores as well as online tax prep services, making it easy and convenient for clients to file their taxes. For more information about products, services, and offers, or to locate a Jackson Hewitt office, visit www.jacksonhewitt.com or call 1 (800) 234-1040.

SOURCE Jackson Hewitt Tax Service Inc.