IRS Notice CP161: Business balance due
Quick answerA request for payment of unpaid tax, penalties or interest on a business tax return.
Letter / noticeCP161
MeaningBusiness balance due
Action needed?Yes — see steps
What happens next
Pay by the due date to limit penalties and interest.
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What you should do
- Check the amount against your return and deposits
- Pay or arrange an installment agreement

Scam check: the IRS first contacts you by mail. Use only the phone numbers printed on your letter or on IRS.gov — never ones from a text, email or unofficial site.
Frequently asked questions
What does IRS Notice CP161 mean?
A request for payment of unpaid tax, penalties or interest on a business tax return.
What should I do?
Check the amount against your return and deposits Pay or arrange an installment agreement
How long does it take?
Pay by the due date to limit penalties and interest.
Sources
- IRS: Understanding your IRS notice or letter
- IRS: Get Transcript
- Taxpayer Advocate Service (independent help inside the IRS)
Written by the editorial team and checked against the official sources above. See our editorial policy.
By the TranscriptCodes Editorial Team · Last reviewed 2026-11-12.