CP 161 - Balance Due - Request for Payment or Notice of Unpaid Balance - Z Tax & Accounting

The IRS notice "CP 161" is not a math error notice. It shows the underpaid tax according to the IRS records. CP 161 shows the tax you reported on the return, the payments the IRS applied, and the resulting underpayment the IRS has on record.

This notice is a reconciliation issue and the starting point is generally to compare the payments made from your records to the payments in the IRS records. If the payments you made reconcile with the payments recorded by the IRS, pay the balance due by the due date on the notice. If you cannot pay the balance in full, contact the IRS to possibly set up an installment agreement. If one of your payments made is missing from the IRS listing, contact the IRS with documentation of the payment - cancelled check, direct debit information, etc.

At Z Tax & Accounting, we specialize in helping clients navigate IRS & State tax debt, back taxes, and audit issues with confidence and professionalism. Our team of experienced IRS Enrolled Agents, admitted to practice before the IRS, provides expert representation for IRS audits, collections, and appeals. Whether you are facing personal or business tax challenges, we are here to protect your rights and help you achieve the best possible outcomes. Call us today at (214) 699-4790.