USTaxPenaltySaverCP161
High PriorityBalance Due on Business Account
Your business has an unpaid balance due for employment or other business taxes.
Response Deadline
10 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
CP161 is the business equivalent of CP14 - it is the first notice that your business owes taxes. This typically relates to Form 941 (quarterly employment taxes), Form 940 (unemployment taxes), or other business tax returns. Interest and penalties accrue from the original due date.
Why You May Have Received This
- 1Unpaid Form 941 employment taxes
- 2Unpaid Form 940 FUTA taxes
- 3Business income tax balance
Required Actions
1
Pay the balance due
2
Set up a business payment plan
3
Contact IRS if you believe balance is incorrect
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- Federal Tax Lien may be filed
- Trust Fund Recovery Penalty may be assessed against responsible persons
- Collection notices will escalate (CP504, final notice)
Tips & Best Practices
- Employment taxes are trust fund taxes with serious consequences
- Responsible persons may be personally liable (TFRP)
- Set up payment arrangement quickly to avoid further penalties
Related Resources
Legal References
IRC § 6651IRC § 6656IRM 5.19.1
Ready to Take Action?
Our guided workflow will walk you through exactly what to do for this notice, step by step.