Home › IRS notices › CP161 notice
CP161 notice: what it means and what to do
Got an IRS CP161 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP161 notice freeWhat the IRS says this notice is about
You received this notice because you have an unpaid balance due.
What you need to do
- Read your notice carefully ― it explains how we calculated the amount due.
- Compare the figures on the notice with your tax return.
- Check the list of payments we applied to your account to see if we applied all the payments you made.
- Contact us within 10 days of the date of your notice if you think we made a mistake.
- Pay the amount due by the date on the notice.
- Contact us to make payment arrangements if you can't pay the full amount you owe. You can also read more about payment options .
Your deadline
The IRS page for this notice mentions 10 days. Always use the date printed on your own notice.
What to check before you answer
You have 60 days to disagree
If you disagree with the change and ask in writing within 60 days of the notice date, the law requires the IRS to reverse it. If the IRS still disagrees, it must then use the regular process, which keeps your appeal rights.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
- Complete and send us a Form 2848, Power of Attorney and Declaration of Representative PDF , to authorize someone (such as an accountant) to contact us on your behalf.
- Learn more about how to submit an offer in compromise .
Common questions
Will you charge me 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. 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. 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. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call.
Helpful information
- Publication 594, The IRS Collection Process PDF
- Form 9465, Installment Agreement Request PDF
- Publication 15, (Circular E), Employer’s Tax Guide
- Publication 542, Corporations
- Publication 559, Survivors, Executors, and Administrators
- Publication 598, Tax on Unrelated Business Income of Exempt Organizations