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? CP162A
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about?
- The IRS charged you a penalty because:
- your partnership or S corporation return was late or,
- you didn't file your return electronically, as required.
- What should you do if you receive this notice?
- If you agree with the penalties, mail your full payment to the IRS by the date shown on your letter to avoid additional interest charges.
- If you think the IRS incorrectly charged a penalty and you meet any of the criteria below, an authorized officer or partner can call the IRS at 800-829-0922 to discuss the account:
- The IRS charged a penalty against the partnership for failure to file electronically and it has fewer than 101 partners or it received a waiver of the requirement to file electronically for the year in question. Be prepared to provide a copy of the waiver or evidence of the number of partners in the partnership at any time during the year.
- The IRS charged a penalty against the partnership or S corporation for filing late when it filed the return on time. Be prepared to fax documentary evidence of filing a timely extension, timely mailing, etc. Note: Protect yourself when sending digital data by understanding the fax service’s privacy and security policies.
- If the IRS correctly charged the partnership or S corporation a penalty for filing late, but you believe it had reasonable cause for doing so, you can mail a written explanation requesting abatement of the penalty to the IRS office where you filed the return. They'll notify the partnership or S corporation if they accept your explanation.
- If the partnership is a small partnership of 10 or fewer partners and the IRS assessed a penalty for filing late, it may qualify for a waiver of the penalty under Revenue Procedure (Rev. Proc.) 84-35.
- Note: For the purpose of this penalty a Real Estate Mortgage Investment Conduit (REMIC) is treated as a partnership, and a REMIC return (Form 1066) is treated as a partnership return.
FAQs & Additional Information
- What information am I required to include in the return? If it’s listed in the instructions for the return as required information, you must include it.
- What if I can’t get the missing information, due to no fault of my own? If you can’t get the missing information, you can submit a written explanation and ask for a waiver of the penalty for reasonable cause.
- Who can call the IRS about this notice?
- In the case of a small partnership that hasn’t designated a tax-matters partner, any partner can call the IRS. Otherwise, only the tax matters partner or someone who the tax matters partner authorizes using Form 2848, Power of Attorney and Declaration of Representative.
- In the case of a corporation, any corporate officer authorized to bind the corporation with his or her signature or anyone who the corporation’s chief officer authorizes using Form 2848 may call.
Resources
Looking for more information about this notice? Here are some helpful resources:
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.