VALID › Notice Library › CP166 notice
In the IRS’s own words · not reviewed by VALID
CP166 notice explained, in the IRS’s own words
We couldn’t withdraw your monthly payment because there wasn’t enough money in your bank account.
Read the full CP166 page on irs.gov ↗
What this notice is about
We couldn’t withdraw your monthly payment because there wasn’t enough money in your bank account.
What you need to do
- If you haven’t already, make a payment.
- Each month, make sure there's enough money in your bank account to cover your monthly Direct Debit Installment Agreement (DDIA) payment by the due date.
I sent my monthly payment by mail this month. Why did the IRS still try to withdraw it from my account?
Once you establish a DDIA, you’ve agreed to allow the IRS to automatically withdraw your fixed monthly payment on the scheduled date every month. Even if you mailed a payment, we will still try to withdraw it from your account.
I sent my updated checking account information, but the IRS tried to withdraw money from my old account. How can I make sure you have the right account?
You can verify and update your DDIA using the Online Payment Agreement (OPA) tool. If your bank charged you a fee because we tried to withdraw from your old account, you’ll need to contact your bank to have the fee waived. Their fees are separate from any IRS charges.
I'm sure I had enough money in my bank account. Why couldn't the payment be withdrawn?
You'll have to contact your bank to clarify the situation. In addition, if your installment agreement is now cancelled, you can use the OPA tool to reinstate it.
How can I get the penalty charge for insufficient funds removed?
If you believe you have a valid reason to remove the penalty, you may qualify for penalty relief.
How do I change my monthly payment date on my DDIA?
You can use the OPA tool.
The notice I received said "You may also owe additional interest and penalties." What does that mean?
You need to file your return and pay your tax by the due date to avoid interest and penalty charges. If any balance remains unpaid, additional interest and penalties will be added to what you owe.
Tips for next year
Consider paying your taxes throughout the year. You can adjust your withholding or make estimated tax payments to help avoid a balance due, interest, and penalties.
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.