Notice CP161: Balance due

What CP161 means

• You received this notice because you have an unpaid balance due.
• The notice explains how the IRS calculated the amount and lists the payments it applied to your account.

If it is ignored, and what usually comes next

If you don't act, the IRS says:

• Interest will continue to build on the unpaid balance after the payment due date.
• You'll be charged a late payment or failure to deposit penalty, depending on what you owe.

The CP161 page doesn't say which notice comes next.

What you can do yourself

1. Compare the figures on the notice with your tax return.
2. Check the list of payments to see whether every payment you made was applied.
3. If you think there's a mistake, call the toll-free number on your notice within 10 days. Have documentation such as cancelled checks ready.
4. Pay by the date on the notice. No more interest is charged if you pay in full by the due date.
5. If you can't pay it all, contact the IRS about a payment plan, or ask about an Offer in Compromise.
6. To let someone contact the IRS for you, use Form 2848, Power of Attorney.

When to bring in an Enrolled Agent

The IRS notes that you can authorize someone to represent you or contact it for you. Consider getting help if:

• You think the calculation is wrong, and the 10-day window is close.
• You can't pay in full and aren't sure which payment plan fits.
• You think the IRS figures are wrong, or a payment wasn't credited.
• You'd rather not deal with the IRS phone line yourself.

Official IRS resource

Read the IRS's own explanation: IRS, Understanding your CP161 notice (irs.gov).