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CP165 notice: what it means and what to do
Got an IRS CP165 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 CP165 notice freeWhat the IRS says this notice is about
We sent you this notice because your bank didn't honor your payment. A dishonored check or bad check is a payment that couldn’t clear your bank account because you don’t have enough money to cover the payment. As a result, we charged you a bad check penalty .
What you need to do
Read your notice carefully ― it explains your due date, amount due and payment options .
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
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
Learn more about payment plans and how to apply online for a payment plan.
Common questions
You may owe additional penalties and interest.
You can follow the instructions provided in your notice or call us at the toll-free number provided on your notice. If you choose to call, have your paperwork (such as cancelled checks, amended return, etc.) and your employer ID number, tax year and form number ready when you call.
Not if you pay the full amount you owe by the notice payment due date. However, interest adds up on the unpaid amount after the payment due date.
Yes, you could receive a late payment penalty. You can call us at the number on your notice if you can't pay the full amount by your notice payment due date because of financial problems. We may be able to remove the penalty based on your situation.
Helpful information
- Publication 594, The IRS Collection Process PDF
- Form 656-B, Offer in Compromise Booklet PDF
- Form 9465, Installment Agreement Request PDF
- Notice 746, Information About Your Notice, Penalty and Interest PDF