CP161 Notice – Late filed 941/940 but taxes paid via EFTPS, IRS not answering calls
Hi everyone,
I received multiple CP161 notices from the IRS related to Form 941 and Form 940 (payroll taxes).
The issue is that the taxes were paid on time through EFTPS, but the returns were filed late. This happened because my previous accountant was making the payments but was not filing the payroll tax returns.
Now the IRS is charging failure to file and failure to pay penalties, plus interest, even though the taxes themselves were already paid.
I have tried calling the IRS multiple times (more than 4 times) and nothing.
At this point, I’m planning to submit a written request for penalty abatement based on reasonable cause (reliance on a prior accountant), but I’m not sure if I should:
- Send Form 843, or
- Just send a written letter with supporting documentation
Has anyone dealt with a similar situation?
- Any tips to improve the chances of getting penalties removed?
- Is it worth continuing to try calling, or should I just proceed in writing?
I do have full proof of all payments through EFTPS.
Thanks in advance for any guidance.