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Informational

IRS CP128 Notice

Remaining Balance After an Overpayment Was Applied

A business-account notice: an overpayment (offset-in) from one tax period was applied to another, and a balance is still due.

What is CP128? CP128 tells you that you have a remaining balance due on a tax period, after an overpayment (the IRS calls it an "offset-in") was applied to your account.

What This Notice Means

CP128 tells you that you have a remaining balance due on a tax period, after an overpayment (the IRS calls it an "offset-in") was applied to your account.

The payment instructions the IRS gives -- payable to the United States Treasury, with an EIN, tax form number, and tax period noted on the payment -- identify this as a business-account (EIN-based) notice, distinct from CP49's individual refund-offset scenario.

Why You Received This Notice

  • 1
    An overpayment from one tax period was applied to your account (an "offset-in").
  • 2
    A balance remains due on the period after that overpayment was applied.

Important Deadline

The IRS states that if you don't pay the amount you owe in full by the date on your notice, interest will accrue on the unpaid balance after that date, and the IRS states you'll also receive a late payment penalty if you did not pay the amount you owe in full. Use the date printed on the notice you received.

What You Should Do

  • Read and review the notice carefully.
  • If you owe, pay the amount due now.
  • Make the payment payable to the United States Treasury, and note the EIN, tax form number, and tax period on the payment.
  • If you can't pay the full amount, the IRS states to see if you qualify to set up a payment plan through the Online Payment Agreement Application.

Resolution Options That May Help

Payment Plan

Taxpayers with steady income who can afford monthly payments

What NOT to Do

  • Do NOT assume the offset resolved the full balance. The notice exists because it did not.
  • Do NOT mail payment without the EIN, tax form number, and tax period noted, per the IRS's own instructions.
  • Do NOT assume missing the deadline is limited to interest. The IRS states you'll receive a late payment penalty if you did not pay the amount you owe in full, in addition to accruing interest.

Frequently Asked Questions

What if I disagree with the balance?
The IRS states: "Contact us at the toll-free number listed in the top right corner of your CP128 notice if you disagree." It also names the Taxpayer Advocate Service as a resource if direct contact doesn't resolve it.
Am I charged interest on the money I owe?
The IRS states: "If you don't pay the amount you owe in full by the date on your notice, interest will accrue on the unpaid balance after that date."
Will I receive a penalty if I can't pay the full amount?
The IRS states: "Yes, you'll receive a late payment penalty if you did not pay the amount you owe in full."
What happens if I can't pay the full amount I owe?
The IRS states to see if you qualify to set up a payment plan through the Online Payment Agreement Application.

Need Help With This Notice?

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Related Notices

CP49Overpayment Applied to Other Tax DebtCP39Refund Applied to a Spouse's or Former Spouse's Tax DebtCP230Employment Tax Adjusted for an Information Return Mismatch

Recommended Next Steps

  • Confirm the tax period and EIN on the notice against your own business records.
  • If you disagree, the IRS states to contact it at the toll-free number in the top right corner of the notice.

Sources and last reviewed

Sourced to primary IRS materials and editorially reviewed on 2026-08-24. Not reviewed by a tax professional. Not tax advice. This page explains a notice in general terms and is not tax or legal advice about your situation. Always use the dates and instructions printed on the notice you actually received. Report a correction.