What This Notice Means
You have a tax liability under Internal Revenue Code section 965 that you're paying in installments. The CP56 tells you that an installment payment is due.
What to Do
- Pay online, and specify "IRC Section 965" when you authorize the payment.
- Make the section 965 payment separately from any other tax payment.
- Pay by the due date on the notice.
Getting the designation right matters. A payment that isn't marked as a section 965 payment may not be applied to the installment the way you intend.
If You Can't Pay the Full Installment
This is the part to take seriously. If you don't pay the full installment by the due date, you may be charged a failure to pay penalty, and the full amount of your net tax liability may become due immediately.
In other words, missing one installment can put the entire remaining balance in front of you at once. If cash is tight, get help before the due date, not after.
If You Pay More Than the Installment
You can't choose where the extra goes. The IRS applies any overpayment to the remaining net tax liability until it's paid in full. It can only refund, or apply as a credit elect, payments or credits that exceed your full income tax liability.
If You Disagree
Call the number on your notice to review your account with a representative. Have your account information ready when you call.
Keep Good Records
- Keep a copy of each CP56 and your payment confirmation.
- Track the remaining installments and their due dates.
- Check that each payment was applied as a section 965 payment.
If you received a CP56 and can't make the installment, call us at (813) 229-7100.