IRS CP166 Notice
Your Direct Debit Payment Could Not Be Taken
The IRS could not withdraw the monthly payment. It will keep trying even if you also mailed one.
What is CP166? CP166 tells you the IRS could not withdraw your monthly payment because there was not enough money in the bank account.
What This Notice Means
CP166 tells you the IRS could not withdraw your monthly payment because there was not enough money in the bank account.
Two things on this page surprise people. The IRS states that once you establish a Direct Debit Installment Agreement it will still attempt the automatic withdrawal even if you also mailed a payment that month — the mailed payment does not cancel the debit. And if your bank charged a fee because the IRS tried an old account, the IRS states you need to contact your bank about it, because those fees are separate from any IRS charges.
Why You Received This Notice
- 1The IRS states it could not withdraw your monthly payment because there was not enough money in your bank account.
Important Deadline
The IRS publishes no number of days on the CP166 page. It says to make a payment if you have not already, and to make sure there is enough money in the account to cover the monthly Direct Debit Installment Agreement payment by the due date each month.
What You Should Do
- Make a payment, if you have not already.
- Make sure the account has enough to cover the monthly Direct Debit Installment Agreement payment by the due date each month.
- If your bank details have changed, the IRS says to verify and update the agreement using the Online Payment Agreement tool.
- If the agreement has been cancelled, the IRS states you can use the Online Payment Agreement tool to reinstate it.
Resolution Options That May Help
Payment Plan
Taxpayers with steady income who can afford monthly payments
CNC Status
Taxpayers experiencing severe financial hardship
Penalty Relief
Situations where the same return type was filed on time for the prior three years and no penalty was assessed in that window — the timely compliance history the IRS tests for administrative relief
What NOT to Do
- Do NOT mail a payment expecting it to stop the direct debit. The IRS states that once a Direct Debit Installment Agreement is established it will still attempt to withdraw the fixed monthly payment on the scheduled date, even if you mailed one.
- Do NOT ask the IRS to refund a bank fee. The IRS states you need to contact your bank to have it waived, and that bank fees are separate from any IRS charges.
Frequently Asked Questions
I mailed my payment. Why did the IRS still try to take it from my account?
My bank charged me a fee. Can the IRS remove it?
Can the insufficient-funds penalty be removed?
How do I change my payment date?
Need Help With This Notice?
Use our free tools to understand your options and connect with professionals who can help.
Related Notices
Recommended Next Steps
- Check whether the bank details the IRS holds are current. The Online Payment Agreement tool is where the IRS says to verify and update them.
- If a penalty was charged for insufficient funds, the IRS states you may qualify for penalty relief if you believe you have a valid reason.
- If the agreement was cancelled, reinstating it is done through the same tool.
Sources and last reviewed
- Understanding your CP166 notice — Internal Revenue Service, retrieved 2026-08-21
- Payment plans; installment agreements — Internal Revenue Service, retrieved 2026-08-21
- Penalty relief — Internal Revenue Service, retrieved 2026-08-21
Sourced to primary IRS materials and editorially reviewed on 2026-08-21. 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.