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IRS Notice CP 161- Request For Payment Or Notice of Unpaid Balance

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IRS Notice CP 161- Request For Payment Or Notice of Unpaid Balance

IRS Notice CP 161- Request For Payment Or Notice of Unpaid Balance

IRS uses CP 161 to remind you of a balance due and to provide you with information about credits applied to the return.  Many people mistakenly believe this is an indication of a math error on the return; this is not correct.

What Should I Do First After Receiving A CP-161?

The first thing that you should do is to determine if the notice is accurate.  In particular payments that should have been applied to your account.  If you do find that there is a missing payment, you will need to procure a copy the front and BACK of the check.  Once the payment is found and applied to your account for the proper amount, any penalties and interest due to the underpayment will be removed.

If you find that the notice is correct you will want to make payment arrangement as quickly as possible.

How Much Time Do I Have To Respond With at CP 161 Letter?

If you find that the notice is accurate, you will want to quickly make payment arrangement. Look on the notice for the respond by date. This will ensure that you avoid owing additional and penalties or interest.

What If I Can’t Pay or Don’t Pay My Taxes?

If everything is correct and you simply made a mistake, you will want to make arrangement to pay the balance by the due date on the notice. If you fail to pay by the balance due by the due date, you will be accessed additional penalties and interest. If you do not have the money to pay in full, you can request an installment agreement which allows you to pay over time.

What If I Don’t Agree With the CP 161?

If you do not agree with the CP 161, you will want to prepare a letter of dispute and attach any supporting documentation. Of course, nature of the dispute has a lot to do with the action that you can take. If the nature of the dispute is extremely complex, you may need to seek representation.

IRS Notice CP 523-Notice Of Default On An Installment Agreement

IRS Notice CP 11- Changes To Tax Return- Balance Due

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