CP 162 Series Balance Due - Non-Math Error Notices

Prior to January 1, 2022, CP 162 was a balance due notice used to notify taxpayers of penalties assessed on Form 1065 (MFT 06) and Form 1120-S (MFT 02). This notice was issued when Form 1065 or Form 1120-S was assessed a penalty for failure to file by the return due date (including extensions), for failure to include required information on a return, or (for Form 1065) for failure to file electronically when required. See IRM 21.7.4.4.2.7, Partnership Penalties, IRM 20.1.2.4, Failure to File a Partnership Return - IRC 6698, and IRM 20.1.2.6, Failure to File S Corporation Return - IRC 6699, for more information.

After December 31, 2021, the CP 162 was revised and will inform Partnerships with more than 100 partners that they are being assessed a penalty for failure to file electronically. After December 31, 2021 TC 16X will no longer be used to assess IRC 6698/6699 penalties.

After December 31, 2021, the CP 162 was revised to generate for Form 1065 (MFT 06) when the failure to file electronic media penalty is assessed using TC 24X with PRN 688.

In January 2022, CP 162A was created to inform a partnership, Real Estate Mortgage Investment Conduit or S corporation that a penalty has been assessed for failure to timely file Form 1065, 1066 or 1120-S.

A CP 162A will generate for Forms 1065, 1066 and 1120-S when a failure to file/late filing penalty is assessed using TC 24X PRN 722 with or without a PRN 688. See Exhibit 3.14.2-22, Form 1065 (MFT 06) Return and Extension Due Dates, Exhibit 3.14.2-28, Form 1120-S (MFT 02) Estimated Tax Installment Payment, Return, and Extension Due Dates.

Also, in January 2022, CP 162B was created to inform a partnership or S corporation that a penalty is being assessed for missing or incomplete information in relation to Form 1065 or 1120-S.

A CP 162B will generate for Forms 1065 and 1120-S when a missing/incomplete information penalty is assessed using TC 24X PRN 723 with or without a PRN 688.

In January 2024, the CP 162C notice was created to generate when there is a manual or systemic adjustment to a prior assessed penalty and the resulting module balance is either a credit of $0.99 cents or less OR a debit greater than $4.99. The CP 162C generates in lieu of CP 210/220.

In January 2024, the CP 162E was created to generate when there is a manual or systemic adjustment to a prior assessed penalty and the resulting module balance is between $1.00 credit and $4.99 debit. The CP 162E generates in lieu of CP 210/220.