How long do I have to respond to IRS CP162C?

Pay or dispute by the date on the notice. Check the date and any response deadline printed on your notice, and follow the notice's instructions.

What should I do if I received IRS CP162C?

Identify which penalty applies, then pay it or dispute it with proof or a reasonable cause explanation before the date on the notice. If you are unsure, have a tax professional review the letter before you respond to the IRS.

IRS CP162C Notice: Late or Incomplete Partnership or S Corp Return

Your partnership or S corporation was charged a penalty for a late or incomplete return, a missing tracking report, or not e-filing. Pay or dispute by the notice date.

Published by the Law Offices of Darrin T. Mish, P.A.Updated October 13, 2026

Notice: CP162C
Urgency: Urgent
Deadline: Pay or dispute by the date on the notice

Your first move

Identify which penalty applies, then pay it or dispute it with proof or a reasonable cause explanation before the date on the notice.

What This Notice Means

The IRS charged your partnership or S corporation a penalty. A CP162C covers several problems:

The return was filed late.
The return was incomplete.
The partnership didn't file its partnership tracking report.
The return wasn't filed electronically when it was required to be.

Your notice tells you which one applies. Start there.

What to Do

If you agree, pay the full amount by the date on the notice to stop more interest from building.

If information was missing, send it now. The missing-information penalty is charged for each person who was a partner or shareholder during the year, for each month the information stays missing, for up to 12 months. Mail it to the IRS office where you filed the return.

If You Disagree

An authorized officer or partner can call the number on your notice in these situations:

Late filing, but you filed on time. Be ready to fax proof, such as a timely extension or proof of timely mailing.
Missing information that wasn't required. Be ready to explain why. Required information is whatever the return instructions list as required.
No e-file, but the partnership wasn't required to e-file or had a waiver. Have the waiver or proof of the number of partners ready.

Reasonable Cause

If the penalty was correct but the entity had a good reason, you can ask for abatement in writing. For a late return, mail an explanation to the IRS office where you filed. For missing information, send the explanation with the missing information, signed under penalty of perjury. The IRS will tell the entity whether it accepts.

Small partnerships with 10 or fewer partners may qualify for relief from the late filing or missing-information penalty under Revenue Procedure 84-35. All partners must be natural persons (not nonresident aliens) or their estates, each partner's share of every item must be the same, the partnership can't have elected into the consolidated audit proceedings rules, and every partner must have reported their share on a timely return. A married couple filing jointly counts as one partner.

If you qualify, return the notice with a statement signed under penalty of perjury. A materially false statement allows the IRS to reassert the penalty and add a false statement penalty.

If your business received a CP162C and you want help getting the penalty removed, call us at (813) 229-7100.

This letter has a clock on it. Don’t run it out alone.

Free consultation with Darrin T. Mish, a Tampa tax attorney licensed since 1993 and admitted to the U.S. Tax Court. Bring the letter.

Call (813) 229-7100

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