What This Notice Means

A CP163 is a reminder. You still have a balance due, and the IRS wants it dealt with now. This isn't a first contact. The balance has been sitting.

What to Do

  • Read the notice. It shows how the IRS figured the amount due.
  • Compare those figures with your tax return.
  • Check the list of payments the IRS applied. Make sure every payment you made is there.
  • Pay the amount due by the date on the notice.

If you pay in full by the payment due date, no additional interest is charged. After that date, interest keeps growing on whatever is unpaid.

If You Can't Pay

Don't ignore it. You can request a payment plan by calling the number on your notice or by filing Form 9465, Installment Agreement Request. Other options include an offer in compromise and a temporary delay of collection if you can't pay anything right now.

Expect a penalty if you don't pay in full. Depending on what you owe, it will be a late payment penalty or a failure to deposit penalty. Penalty relief may be available if you qualify.

Unpaid balances move further into the collection process. That can include a federal tax lien, which is a public claim against your property and can affect your credit.

If You Disagree

Call the number on your notice. Have your documentation ready, such as canceled checks or an amended return. If a payment is missing from the notice, proof of that payment is your strongest evidence.

Getting Help

You can authorize someone, such as an attorney or accountant, to deal with the IRS for you by filing Form 2848, Power of Attorney and Declaration of Representative. If you're stuck and can't get the problem resolved through normal channels, the Taxpayer Advocate Service may be able to help.

If you received a CP163 and can't pay the balance in full, call us at (813) 229-7100.