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If you received an irs cp161 notice, you have an unpaid balance due. Taxpayers have the right to request records related to the irs's collection efforts against them, such as revenue officer case files, collection notices, or documentation of collection activities. The national association of tax professionals has found that the irs is erroneously issuing cp161 notices (balance due for underpayment of estimated tax) for certain 2024 form 1041 trust returns.

Your complete guide to irs notice cp161 If you agree you owe the tax follow the collection prep steps. Verify the tax adjustment, choose to pay or dispute, and prevent future collection actions.

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. Irs notice cp161 is typically the first notice the irs sends to your business after it files a tax return showing an unpaid balance due The irs cp161 notice is an official letter from the internal revenue service that addresses issues related to your tax account It serves as a formal notification regarding a balance due or an action required.

The irs has identified a programming error that caused some cp161 balance due notices to be sent in error for 2024 form 1041 trust returns If you received one of these notices, here's what to know. The cp161 notice is sent by the irs to inform taxpayers that they have an unpaid balance due This notice outlines the specific amount owed, including any interest or penalties, and explains how the irs calculated it.

The irs uses notice cp161 to inform you of a balance due

Your situation is not yet urgent but should be corrected The irs will send gradually more hostile letters to you until they issue a notice of intent to levy

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