What Is IRS Notice CP162A? A Guide for Maryland Business Owners

If you’re a business owner in Montgomery County or Frederick County, Maryland, and have received IRS Notice CP162A, it’s crucial to understand what it means and how to respond. As an experienced IRS enrolled agent in Maryland, Aventa Tax is here to help you navigate tax penalty issues with confidence.

What Is CP162A?

IRS Notice CP162A is sent to partnerships or S corporations when the IRS assesses penalties for one of the following reasons:

• Filing your partnership or S corporation return late

• Submitting an incomplete tax return

• Failing to file electronically when required (for partnerships with more than 100 partners)

The penalties can be substantial, calculated per partner and per month the return is late, up to 12 months. For example, as of recent IRS guidance, the penalty can be over $200 per partner per month. If your partnership has 10 partners and files three months late, you could face a penalty exceeding $6,000.

What Should You Do If You Receive CP162A?

• The first step is to carefully review the notice in order to understand the reason for the penalty.

• If you agree, pay the penalty promptly to avoid further interest.

• If you believe the penalty was assessed in error or have reasonable cause (such as a small partnership exception or timely filed extension), you may be able to dispute the penalty with supporting documentation.

• Act quickly—interest accrues on unpaid penalties, and ignoring the notice can escalate the problem.

How Aventa Tax Can Help

As specialists in IRS representation Maryland and tax resolution services Montgomery County, Aventa Tax educates and advocates for local business owners. We help you:

• Interpret IRS notices like CP162A

• Prepare and submit penalty abatement requests

• Represent you before the IRS for the best possible outcome

We offer Enrolled Agent services in Maryland to help clients navigate IRS notices and tax issues. For trusted tax penalty help Maryland, contact Aventa Tax—your local authority on IRS compliance. Contact us Aventa Tax at 301-235-2724 or learn more here.

The information provided in this article is for educational purposes only and does not constitute tax nor legal advice. For more information, speak to a qualified financial professional.

Aventa Tax LLC is a tax firm located in Germantown, Maryland offering IRS Enrolled Agent services, IRS tax notice help, tax resolution, and more in Montgomery County, Frederick County and other surrounding counties.