Understanding a CP14 letter I got with a $25 fine.

Forum|Forum|2 years ago
March 21, 2024
2 replies
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Letter says, tax you owed when you filed -- 9316

I owed 266, I had paid 9050.

I thought you had to owe them way more than you paid before you were fined, like say more than 900?

It says you filed your 1040 with an amount owed.

Does ANY amount owed receive a fine?

Best answer by Mike9241

Did you have funds to cover the $266 or did the payment bounce. That would be the reason for the penalty.

You can file any time before 4/15 with a balance due and there is no penalty as long as the balance due is paid by 4/15/2024. bouncing a payment is different.

The IRS penalty for a dishonored check or other form of payment, such as NSF (Non-Sufficient Funds), is calculated based on the amount of the payment. Here’s how it works:

If the payment amount is less than $1,250, the penalty is the payment amount or $25, whichever is less.

leelesesAuthor

Also, I used the IRS payment website to pay 25

I selected it was for a 1040 filed.

They also said now taxes paid was 9316 and just send 25 more.

Am I DONE now or are more letters coming?

Mike9241Answer

Did you have funds to cover the $266 or did the payment bounce. That would be the reason for the penalty.

You can file any time before 4/15 with a balance due and there is no penalty as long as the balance due is paid by 4/15/2024. bouncing a payment is different.

The IRS penalty for a dishonored check or other form of payment, such as NSF (Non-Sufficient Funds), is calculated based on the amount of the payment. Here’s how it works:

If the payment amount is less than $1,250, the penalty is the payment amount or $25, whichever is less.