Understanding your CP166 notice

 

What this notice is about

We couldn’t withdraw your monthly payment because there wasn’t enough money in your bank account.


What you need to do


Frequently asked questions

Once you establish a DDIA, you’ve agreed to allow the IRS to automatically withdraw your fixed monthly payment on the scheduled date every month. Even if you mailed a payment, we will still try to withdraw it from your account.

You can verify and update your DDIA using the Online Payment Agreement (OPA) tool. If your bank charged you a fee because we tried to withdraw from your old account, you’ll need to contact your bank to have the fee waived. Their fees are separate from any IRS charges.

You'll have to contact your bank to clarify the situation. In addition, if your installment agreement is now cancelled, you can use the OPA tool to reinstate it.

If you believe you have a valid reason to remove the penalty, you may qualify for penalty relief.

You need to file your return and pay your tax by the due date to avoid interest and penalty charges. If any balance remains unpaid, additional interest and penalties will be added to what you owe.


Tips for next year

Consider paying your taxes throughout the year. You can adjust your withholding or make estimated tax payments to help avoid a balance due, interest, and penalties.


Helpful information

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