CP 161 Notice
Why did I receive the CP 161 notice?
This notice shows the amount of underpaid tax according to their records. This is a bill for taxes due. The middle section of the notice shows the tax you reported on the return, the credits the IRS applied, and the underpayment.
What do I need to do?
Check the list of estimated payments the IRS applied to your account using your IRS Online Account. Many times, a misapplied payment is the reason for the balance due. If that's the case, or if the amount of your payment differs from the one they show, you'll need to give them information about the payment so they can look for it. Once they find the payment and apply it, they'll remove or reduce any penalties and interest caused by the underpayment.
If the payments shown in your records agree with the amounts listed on the notice, you should pay the total amount due by the date shown. If you don't pay the amount due by that date, they'll charge additional penalties and interest. If you can't pay the amount due, you may be able to request an installment agreement that allows you to pay what you owe in smaller, more manageable amounts.
I don't agree with the notice. Should I call or mail my response?
The action you take depends on the reason for the underpayment. In most cases, you can call them at the number printed on the notice to resolve the account.
Some of the more common reasons for disagreeing with the notice include:
What to do if you disagree with the IRS tax notice
Getting rid of tax penalties
What to do if you do not have the money to pay the IRS
This notice shows the amount of underpaid tax according to their records. This is a bill for taxes due. The middle section of the notice shows the tax you reported on the return, the credits the IRS applied, and the underpayment.
What do I need to do?
Check the list of estimated payments the IRS applied to your account using your IRS Online Account. Many times, a misapplied payment is the reason for the balance due. If that's the case, or if the amount of your payment differs from the one they show, you'll need to give them information about the payment so they can look for it. Once they find the payment and apply it, they'll remove or reduce any penalties and interest caused by the underpayment.
If the payments shown in your records agree with the amounts listed on the notice, you should pay the total amount due by the date shown. If you don't pay the amount due by that date, they'll charge additional penalties and interest. If you can't pay the amount due, you may be able to request an installment agreement that allows you to pay what you owe in smaller, more manageable amounts.
I don't agree with the notice. Should I call or mail my response?
The action you take depends on the reason for the underpayment. In most cases, you can call them at the number printed on the notice to resolve the account.
Some of the more common reasons for disagreeing with the notice include:
- A Missing Payment - Call them at the number printed on the notice and have your canceled check handy. Tell them the amount of the missing payment and they'll see if they can find it while you wait. If they can't find the payment, you'll need to make a photocopy of the check to mail to them as proof of payment made.
- Amount of Payment doesn't Match Notice - Send them a photocopy of both sides of the canceled check along with a copy of your bank statement showing the amount that was deducted from your account.
- Amended Tax Return hasn't Processed - If you received the notice because they haven't processed your amended return showing a tax decrease, call them to see if they processed the amended return after they issued the notice.
What to do if you disagree with the IRS tax notice
Getting rid of tax penalties
What to do if you do not have the money to pay the IRS
