CP 162C Adjustment of Previously Assessed Penalty Refund Under $1.00 or Balance Due…
Internal Revenue Manual Part 3. Submission Processing · 2026-10-03 edition · updated 2026-10-04 · United States
The CP 162C was developed to more clearly explain adjustments to previously assessed penalties in lieu of issuing a CP 210/220 adjustment notice when the resulting module balance will be a credit of $0.99 or less or a debit greater than $4.99.
An adjustment of the previously assessed penalties in the table below will generate a CP 162C:
MFT/Form
With a
And a resulting Module Balance of
MFT 02 & TC 150 doc code = 16 (Form 1120-S), MFT 06 (Form 1065 or 1065-B), or MFT 07 (Form 1066)
TC 29X/TC 30X manual or systemic adjustment to TC 161
a credit of $0.99 or less or a debit balance greater than $4.99
MFT 02 & TC 150 doc code = 16 (Form 1120-S), MFT 06 (Form 1065 or 1065-B),or MFT 07 (Form 1066)
TC 24X with PRN 722 manual or systemic adjustment in current cycle with or without PRN 688 adjusted in current cycle
a credit of $0.99 or less or a debit balance greater than $4.99
MFT 02 & TC 150 doc code = 16 (Form 1120-S) or MFT 06 (Form 1065 or 1065-B)
TC 24X with PRN 723 manual or systemic adjustment in current cycle with or without PRN 688
a credit of $0.99 or less or a debit balance greater than $4.99
For more information on the specific penalties being abated see IRM 3.14.2.6.10.1, CP 162 Failure to File Electronic Partnership Return, IRM 3.14.2.6.10.2, CP 162A Failure to File Form 1065, Form 1066 or Form 1120-S General Review Procedures, and IRM 3.14.2.6.10.3, CP 162B Missing Information on Form 1065 and Form 1120-S General Review Procedures.
Due to programming constraints, CP 162C notices will be reviewed as Manual Intervention only cases, see IRM 3.14.2.5.3, Manual Intervention CAF/RAF/MM/SC.
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