IRS Notice CP162 – We Charged You A Penalty


Your business owes a balance due resulting from a penalty charged for failure to file Form 1065 or Form 1120S by the due date.

View notice image

Type of Notice: Account information or change

Most common tax problem area: Business penalties

Other tax problem areas: Unpaid business taxes

Why you received IRS Notice CP162

  1. Your partnership or S Corporation filed its tax return after the due date or filed an incomplete return.
  2. The IRS sent CP162 to notify you that penalties were assessed for failure to file a timely and/or complete tax return. A balance is now due. The notice may also include a penalty for failure to file the return electronically, which is required for partnerships of 100 partners or more.

Your options to address IRS Notice CP162

  1. Dispute the penalties
  2. Make arrangements to pay

Notice deadline: 21 days

If you miss the deadline: The IRS will charge interest from the date of this notice.

Want more help?

See your local tax pro for a free consultation.

Get help from an IRS expert

H&R Block’s experts can solve any IRS problem, no matter how complex.

Make an appointment

Or call 855-536-6504

Related Information

Private: How to Address IRS Business Tax Penalties

Understand the most common types of IRS business tax penalties for filing and paying late, and your possible options for requesting IRS penalty relief.

Private: What To Do If You Can’t Pay Your Business Taxes

Learn how to request an IRS payment option, like an extension to pay or an IRS installment agreement, when your business owes taxes and can't pay.

How to Use First-Time Penalty Abatement

Get the facts from H&R Block about the widely available but little-known IRS penalty relief option called first-time penalty abatement.

How Long Does It Take? IRS Penalty Abatement

How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.

Private: The Four Types of IRS Penalty Relief – and How to Know What’s Best for You

Get the facts from H&R Block about the four types of IRS penalty relief, and which IRS penalty relief option may be best for your situation.