What This Notice Means
Your bank didn't honor a payment you sent the IRS. A dishonored or bad check is a payment that couldn't clear because there wasn't enough money in the account to cover it. Because of that, the IRS charged you a bad check penalty.
The payment never went through. That means the tax it was meant to cover is still unpaid, and now there's a penalty on top of it.
What to Do
Read the notice carefully. It shows your due date, the amount due, and your payment options.
Make sure the replacement payment will clear. Use a method and an account you know has the funds.
Interest and Penalties
If you pay the full amount by the payment due date on the notice, you aren't charged more interest. After that date, interest builds on the unpaid amount.
If you can't pay in full, you could also get a late payment penalty. If financial problems are why you can't pay by the due date, call the number on your notice. The IRS may be able to remove the penalty based on your situation.
If You Can't Pay
You can apply for a payment plan, including online. Form 9465, Installment Agreement Request, is the paper version. An offer in compromise may also be an option if you can't pay the full debt. Not paying means more penalties and interest.
If You Disagree
Follow the instructions in your notice or call the number listed on it. Before you call, gather your paperwork: canceled checks, bank statements, any amended return, and your identification number (such as your employer ID number), the tax year, and the form number.
If the bank made the mistake and your account had the funds, get a letter from the bank saying so. That's the evidence you need.
If a bounced payment left you with a CP165 and a balance you can't cover, call us at (813) 229-7100.