To use offset 14 with tool number 4 you need to say T0414, also check that your tip data is correct on your tool offset page. For a tip that points straight down it should have an 8 for tip direction.
Code:
G50S4000
G00 X50 Z50
X1.0Z0.050 T040404 G96S800 M03 M08
G85 NBAL D.025 U.010 W.005 F.015
NBAL G81
G00 X-.03 Z.3
G1 Z0 G42F.005
X0.0
G03 X.750 Z-.375 I0 K-.375
T0414
G03 X.375 Z-.700 I-.375 K0
G01 Z-1.0
X1.2
G40 K-.0004
G80
G00 X50.Z50.
T040404
G87 NBAL
G00X50Z50
M02
Try that. I have never used offsets like that within a LAP cycle. Let me know how it turns out.