IRS Penalties & Interest Calculator — Tax Year 2014

The 2014 tax year is often underestimated because enforcement activity did not immediately follow assessment, leading many taxpayers to assume silence meant stability or ongoing processing. Internally, however, failure-to-pay penalties and interest under IRC 6621 continued to accrue, and in some cases the IRS prepared a Substitute for Return that further increased the balance. When taxpayers later reviewed account transcripts during broader compliance checks, the accumulated cost often came as a surprise.

Unresolved 2014 balances often reappear when the IRS evaluates an account as a whole, such as during payment plan requests, offer in compromise reviews, refund offsets, levy notices, or Revenue Officer case reviews. Because 2014 frequently appeared “stable” for years, its return can feel sudden, even though penalties and interest were accumulating continuously in the background.

After reviewing your estimate, common next steps include comparing it to IRS notices, transcripts, and payment history, reviewing whether penalties may qualify for abatement using Form 843, evaluating payment options such as a payment plan or offer in compromise, and determining whether financial hardship supports Currently Not Collectible status. Addressing unresolved balances early can help prevent costly surprises later.