IRS To Send Millions of , Tax Payment Letters, Don't Ignore Them.
CBS News reports the Internal Revenue Service will send millions of letters to taxpayers who are said to have underpaid the agency.
The letter, called CP14, is not to be ignored.
Experts say, if a CP14 letter goes ignored, taxpayers can expect hefty penalties.
Per CBS News, the IRS sends around
9 million CP14 letters annually.
A CP14 is issued if a taxpayer
owes $5 or more to the IRS.
Upon receiving a CP14, taxpayers
have 21 days to issue a payment.
The CP14 is a balance of taxes due notice, and that is why they aren't suspended. , Mark Steber, chief tax information officer for Jackson Hewitt, via CBS News.
It's in the taxpayer's interest
to know that they owe money
so that those penalties and interest don't progress. , Mark Steber, chief tax information officer for Jackson Hewitt, via CBS News.
Unpaid taxes result in interest fees of 0.5% per month and a maximum of 25% of a taxpayer's total balance.
If a balance remains unpaid within 60 days
of an issued CP14, the IRS may place liens
on property, homes and even automobiles.
The IRS is good at a lot of things, and one of the things they are really good at is ultimately getting their money. , Mark Steber, chief tax information officer for Jackson Hewitt, via CBS News