VALID › Notice Library › CP163 notice
In the IRS’s own words · not reviewed by VALID
CP163 notice explained, in the IRS’s own words
This notice reminds you that you still have a balance due and it requires your immediate attention.
Read the full CP163 page on irs.gov ↗
What this notice is about
This notice reminds you that you still have a balance due and it requires your immediate attention.
What you need to do
- Read your notice carefully. It explains how we calculated your amount due.
- Compare the figures on the notice with your tax return.
- Check the list of payments we applied to your account to verify if we applied all the payments you made.
- Pay the amount due by the date on the notice.
- Request a payment plan if you can't pay the full amount you owe.
- Contact us if you disagree by calling the toll-free number shown on your notice.
You may want to
Learn more information about:
- Your tax account
- Your payment options including using the free Electronic Federal Tax Payment System (EFTPS)
- How a tax lien affects you
- Interest
- Penalty relief
- Offers in compromise
- Temporary delay on collection
- Form 2848, Power of Attorney and Declaration of Representative, to allow someone (such as an accountant) to contact us on your behalf.
Will I be charged 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 found on the notice. 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’ll 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. Have your documentation such as canceled checks, amended return, etc. ready when you call.
Tips for next year
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions for which you may qualify. In many cases, you can file free. Learn more about how to file electronically.
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.