VALID › Notice Library › CP161 notice
In the IRS’s own words · not reviewed by VALID
CP161 notice explained, in the IRS’s own words
You received this notice because you have an unpaid balance due.
Read the full CP161 page on irs.gov ↗
What this notice is about
You received this notice because you have an unpaid balance due.
What you need to do
- Read your notice carefully ― it explains how we calculated the amount due.
- Compare the figures on the notice with your tax return.
- Check the list of payments we applied to your account to see if we applied all the payments you made.
- Contact us within 10 days of the date of your notice if you think we made a mistake.
- Pay the amount due by the date on the notice.
- Contact us to make payment arrangements if you can't pay the full amount you owe. You can also read more about payment options.
You may want to
- Complete and send us a Form 2848, Power of Attorney and Declaration of Representative PDF, to authorize someone (such as an accountant) to contact us on your behalf.
- Learn more about how to submit an offer in compromise.
Will you charge me additional interest on the amount I owe?
We don’t charge additional interest if you pay the full amount you owe by the payment due date. However, interest will continue to increase on the unpaid balance after the payment due date.
Will I receive a penalty if I can't pay the full amount?
Yes. You will receive a late payment or failure to deposit penalty, depending on what you owe. Notice 746, Information About Your Notice, Penalty and Interest PDF, has more information about penalties and interest.
What happens if I can't pay the full amount I owe?
You can request a payment plan if you can't pay the full amount you owe. Call us at the toll-free number on your notice to discuss payment options or learn more about them.
What should I do if I disagree with the notice?
Contact us at the toll-free number on your notice. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call.
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.