What This Notice Means

The CP160 reminds you that you still have a balance due, and it requires your immediate attention. This is not the first time the IRS has told you about this balance.

What to Do

  • Read the notice carefully. It explains how the IRS calculated the amount due.
  • Compare the figures with your tax return.
  • Check the list of payments the IRS applied to your account. Make sure every payment you made is there.
  • Pay the amount due by the date on the notice.
  • If you can't pay in full, request a payment plan.
  • If you disagree, call the toll-free number on your notice.

Interest and Penalties

No additional interest is charged if you pay the full amount by the payment due date on the notice. After that date, interest continues to increase on the unpaid balance.

If you don't pay in full, you'll receive a late payment penalty or a failure to deposit penalty, depending on what you owe. Notice 746, Information About Your Notice, Penalty and Interest, explains both.

If You Can't Pay

Call the toll-free number on your notice to discuss payment options, or use Form 9465, Installment Agreement Request. Other options the IRS points to with this notice include penalty relief, an offer in compromise, and a temporary delay of collection.

The IRS also points you to information on how a federal tax lien affects you. Take that as a signal. A balance that keeps going unpaid moves further into the collection process described in Publication 594.

If You Disagree

Call the toll-free number on your notice. Have your documentation ready, such as cancelled checks or an amended return.

Payments

EFTPS, the free Electronic Federal Tax Payment System, is one way to pay. If someone such as an accountant handles your taxes, Form 2848 authorizes them to contact the IRS on your behalf.

If you received a CP160 notice and can't pay the balance, call us at (813) 229-7100. We can help before it goes further into collection.