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IRS CP 314- Balance Due, IRA Taxes

IRS uses CP314 to notify you that you have an outstanding balance due.  Previously, your client filed Form 5329 (Additional Taxes on Qualified Plans (including IRAs) and Other Tax Favored Accounts) but did not pay the IRA taxes due.

IRS CP 314- Balance Due, IRA Taxes

 

IRS uses CP314 to notify you that you have an outstanding balance due.  Previously, your client filed Form 5329 (Additional Taxes on Qualified Plans (including IRAs) and Other Tax Favored Accounts) but did not pay the IRA taxes due. This notice requests payment of the IRA taxes, as well as any applicable penalties or interest.

 

How Did You Get Here?

  • You filed a individual tax return which included Form 5329 that resulted in a balance due.
  • The balance remains unpaid.
  • The IRS sent CP314 to request payment of the IRA taxes, as well as any applicable penalties or interest.

 

What You Need to Do?

  1. Dispute the taxes you owe
  2. Dispute the penalties
  3. Make arrangements to pay

 

You must response within 21 days.   If you miss the deadline: Penalties and interest will continue to accrue. If you have not contacted the IRS about your unpaid balance, the IRS may file a Notice of Federal Tax Lien or issue a levy against bank accounts or other assets.

 

What are your options?

 

 

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What is my first step?

If you received a letter or notice, a decision has to be made. Do you feel confident to handle this situation on your own? If it is a simple issue and you already know the answer, call or write them. If the issue is more complicated, you need to hire a Certified Tax Resolution Specialist. The IRS or State will take full advantage of your lack of knowledge and experience.

What is Your Next Step?

The next step is to determine if the notice was sent in error. Do you have an outstanding tax liability? Do you have unfiled or incomplete returns?

Is There a Time Limit?

Yes, each letter or notice from the IRS or State will indicate a date that you MUST to contact them by. If you need more time, call the number on the notice or letter and request an extension. DO NOT ALLOW the time to expire without contacting them or hiring a representative to contact them for you.

What You Don’t Want to Do!

What you don’t want to do is nothing. Your tax problems will only get worse if you ignore them. If you cannot pay, there are a number of potential solutions available to those who are otherwise in compliance. In compliance means having all tax returns filed and any balances paid or on a payment plan. If you have outstanding debts or unfiled returns, you need to get hire a Certified Tax Resolution Specialist.

Get Some Help

If you don’t know how to address the issue(s), have unfiled return/unpaid balances or just done feel confident, let the experts at Legacy Tax & Resolution Services represent you. Work with our team of Certified Tax Resolution Specialists to resolve your issue(s) quickly. Best of all, you don’t have to talk to the IRS or State; we can speak on your behalf.

 

 

Download our Special Report “ I Just Received an IRS Notice, What Do I Need To Know?”

In it you will find next steps, dos and don’t and information about your options

 

 

 

 

 

 

 

 

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Stop the stress and resolve your problems!

 

Call 800-829-7483 for a FREE Consultation

 

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Ask a Question via e-mail

 

Also See

Can I Go To Jail For Owing Taxes?

Why Shouldn’t I Just Use my Own CPA or Attorney to Help Me With This Tax Problem?

What is an Offer in Compromise in a nutshell?

I have Let This Get Out of Control. How Soon Could You Start Working On My Behalf?

How are you compensated?

Several Tax Resolution Companies have called Me! Why Should I Hire Legacy Tax % Resolution Services?

Do I Need Local Tax Representation?

How Do I Know If My Situation Qualifies to Have my Tax Bill Reduced?

How Long Does the IRS Have to Collect Back Taxes From Me?

I Have a Deadline With the IRS (or State) Right Around the Corner. Is It Too Late for Legacy Tax & Resolution Services to Help?

 

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