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IRS notice decoder · Bills for a balance due

CP162: a penalty for not filing a partnership return electronically

A CP162 charges a partnership a penalty for not e-filing a return that had to be filed electronically. Pay by the date on it, or explain why it doesn't apply.

By the Carry Forward Learning team Reviewed by Hunter Nottingham, JD, CPA

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CheckedOct 19, 2026

What a CP162 means

A CP162 is a penalty notice. The IRS says it charged the penalty because a return that had to be filed electronically wasn't. source 1

The IRS page frames it around partnerships, and notes that a real estate mortgage investment conduit (a REMIC) is treated as a partnership here, with its Form 1066 treated as a partnership return. source 1

The question we'd ask first is whether the partnership was actually required to e-file that year. The IRS page names two ways out: a small enough partnership, or a waiver of the e-file requirement for that year.

The date that counts

If you agree, pay in full by the date shown on your notice; the IRS says paying by that date avoids additional interest. source 1

Why people get one

  • The partnership filed on paper when the rules required electronic filing.
  • The partnership had a waiver of the e-file requirement, but the IRS doesn't have it on record. source 1
  • The IRS believes the partnership was over the partner-count line that triggers mandatory e-filing. source 1

First steps

  1. Find the tax year and the return on the notice, and pull the return as filed.
  2. Check whether the partnership had to e-file that year: how many partners it had at any time in the year, and whether it held a waiver. source 1
  3. If you agree, pay by the date on the notice. source 1
  4. If you think the penalty is wrong, have an authorized partner or officer call the number printed on your notice, ready to show the waiver or the partner count. source 1
  5. If something outside your control caused the failure, the IRS page says you can send a written explanation and ask for a penalty waiver for reasonable cause. source 1
  6. Verify the balance in the business tax account at irs.gov, typed in yourself, before paying.

What not to do

  • Don't let just anyone call. The IRS page limits who can discuss the account to certain partners, officers or someone authorized on Form 2848. source 1
  • Don't pay through a link in an unexpected email or text. Use irs.gov, typed in yourself.
  • Don't file on paper again next year without checking the e-file rules.
  • Related CP215 Another civil penalty notice a business may get.

Keep reading

Questions

Who can call the IRS about a CP162?

The IRS page says that for a small partnership with no designated tax matters partner, any partner can call; otherwise the tax matters partner or someone they authorize on Form 2848. For a corporation, an officer authorized to bind it, or someone the chief officer authorizes on Form 2848. source 1

Can the CP162 penalty be waived?

The IRS page describes a written explanation and a request for a waiver for reasonable cause where you couldn't get the information through no fault of your own. source 1

What if the partnership had a waiver from e-filing?

The IRS page says to call the number on your notice and be ready to provide a copy of the waiver. source 1

Sources

  1. IRS, Understanding your CP162 notice (updated July 23, 2026) (external site) checked Oct 19, 2026

Every rule on this page comes from the IRS page in the list, read on the date shown. Your notice itself is the final word on its own dates and amounts.