IRS Notice CP14H | Shared Responsibility Payment

September, 14 2023 by Airam Leon, EA

Why did I receive a CP14H notice?

Notice CP14H is issued by the IRS to inform you of your unpaid shared responsibility payment that is due and to request that payment. This means you have an unpaid penalty for not having minimum essential health coverage for you and/or any dependents listed on your return before January 1, 2019.

What is the shared responsibility payment?

When the Affordable Care Act was passed into Federal Law, it required all Americans to have health insurance coverage. This means that you, your spouse, and any dependent listed on your return must be covered by a health insurance policy that provides minimum essential coverage. Plans that qualify for minimum essential coverage include employer-provided health plans, Medi-Cal and Medicare, and certain plans purchased through the online marketplace. Failure to have this health coverage in a year prior to January 1, 2019, resulted in a penalty.
 

What do I need to do?

First, read the notice carefully. It will explain how much you owe and give you payment options on how to pay it.

If you agree with the notice, payment should be made before the due date listed on the notice. The due date can be found both on page 1 and page 2.

If you disagree with the notice, you need to contact the IRS at the Toll-free number listed on the CP14H Notice. The phone number can be found on the first page in the top right corner.
 

What If I am unable to pay the full amount?

If you are unable to pay the full amount by the due date, you can apply for a payment plan online. The website for setting up a payment arrangement can be found on the notice under the ‘Payment Options’ explanation.

If you are unable to pay at all due to financial instability, you can request an offer in compromise, allowing you to pay as much as you can and be forgiven for the remaining balance. This will allow you to settle your debt for less than the amount owed. The IRS will consider your unique situation and your ability to pay by looking at your income, expenses, and assets.

Remember that it is important not to ignore this notice. If the IRS does not hear from you or receive payment by the due date, you can incur additional penalties and interest charges. They may also use future tax refunds to pay the outstanding balance due.

Any notice from the IRS stating you owe them money can be overwhelming, and calling the IRS for direction oftentimes adds to the confusion. Here at TaxAudit, we have over 30 years of experience helping taxpayers resolve their tax debts. Call one of our experienced tax professionals for a cost-free and obligation-free consultation to discuss your particular situation. If you have a sizeable balance due to a tax agency, we offer Tax Debt Relief Assistance. For more information about an Audit Defense membership, you can visit our website or call our Customer Service team at 800-922-8348.