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CP256 notice: what it means and what to do
Got an IRS CP256 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 CP256 notice freeWhat the IRS says this notice is about
The installment payment is due for your IRC section 965 tax liability.
What you need to do
Make your annual installment payment on time as required by IRC section 965(h).
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
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.
Common questions
Will I be penalized if I can't pay the full installment amount by the due date?
Yes. You may be penalized for failure to pay and the full amount of your net tax liability may become due immediately.
Can I elect that an overpayment of my installment be credited to a subsequent tax year or refunded to me if there is an outstanding balance on my IRC Section 965 tax liability?
See Questions and answers about reporting related to section 965 on 2017 tax returns, question 14 and/or Questions and answers about tax year 2018 reporting and payments arising under section 965 , questions 3 & 4.
What should I do if I disagree with the notice?
Call the toll-free number listed on your notice to review your account with a representative. Be sure to have your account information available when you call.
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