IRS Notice CP166 – Insufficient Funds Available for Monthly Payment
The IRS was unable to process a monthly payment due to insufficient funds in your bank account.
Type of Notice: Unpaid balance
Most common tax problem area: Unpaid business taxes
Other tax problem areas: Business tax penalties
Why you received IRS Notice CP166
- You filed a business tax return with a balance due.
- You were unable to pay the balance due in full and the IRS set up an installment agreement by direct debit from your checking account.
- The IRS sent CP166 to notify you that there were not sufficient funds in the checking account to cover the monthly payment. This notice states the IRS will try one more time to withdraw the payment from your account. If there are insufficient funds the second time, your installment agreement may default. You are also notified that penalties may be applied by both the IRS and your bank.
Your options to address IRS Notice CP166
- Make arrangements to pay
Notice deadline: N/A
Want more help?
See your local tax pro for a free consultation.
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