NOTICE CP161

IRS Notice CP161 is a notice that the Internal Revenue Service (IRS) sends to taxpayers who have an unpaid balance due on their taxes. The notice will show the amount of the unpaid balance, as well as the interest and penalties that have accrued. The notice will also include a due date for payment.

There are a few reasons why you might receive an IRS Notice CP161:

• You filed your tax return and reported a balance due, but you did not pay the full amount.
• You made a tax payment, but the IRS did not receive it or did not apply it to your account correctly.
• You received a tax refund, but you used it to pay off other debts instead of paying your tax balance.
• You made a mistake on your tax return that resulted in an underpayment.

• If you receive an IRS Notice CP161, the first thing you should do is carefully review the notice to understand how the IRS calculated the amount due. Then, you should compare the figures on the notice with your tax return and payment records to make sure that the IRS is correct.
• If you find that the IRS made a mistake, you can contact them to have the mistake corrected. If you cannot pay the full amount due by the due date, you can contact the IRS to set up an installment agreement.

To avoid receiving an IRS Notice CP161, it is important to:

• File your tax return on time and pay the full amount due.
• Keep copies of all of your tax returns and payment records.
• Make sure that the IRS has your correct contact information.
• If you cannot pay the full amount due by the due date, contact the IRS to set up an installment agreement.