Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP161
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? You received this notice because you have an unpaid balance due.
- What should you do if you receive this notice?
- Read your notice carefully ― it explains how the IRS calculated the amount due.
- Compare the figures on the notice with your tax return.
- Check the list of payments the IRS applied to your account to see if they applied all the payments you made.
- Contact the IRS within 10 days of the date of your notice if you think they made a mistake.
- Pay the amount due by the date on the notice.
- Contact the IRS to make payment arrangements if you can't pay the full amount you owe. You can also read more about payment options.
FAQs & Additional Information
- Will you charge me additional interest on the amount I owe? The IRS doesn’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.
- 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 the IRS 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 the IRS at the toll-free number on your notice. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
- About the notice - https://www.irs.gov/individuals/understanding-your-cp161-notice
- Example copy of the notice - https://www.irs.gov/pub/notices/cp161_english.pdf
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
