U.S. · IRS notices
IRS CP256 notice explained.
A notice that an installment payment is due on your IRC section 965 tax liability.
CP256 tells you the installment payment is due for your IRC section 965 tax liability. The IRS page says to make your annual installment payment on time as required by IRC section 965(h). It warns that you may be penalized for failure to pay and that the full amount of your net tax liability may become due immediately. The IRS page prints no date; use the due date on your notice.
Compare IRS CP notices
Result
CP notices at a glance
| Notice | What the IRS page says it is | Response, as the IRS page states it |
|---|---|---|
| CP40 | The IRS assigned your unpaid tax account balance to a private collection agency. The notice contains the agency’s name and contact information, which you need for the two-party verification process. | Work with the assigned private collection agency, or pay the balance now. The IRS page prints no response date. |
| CP2057 | You may need to file an amended return. The IRS received information that was not reported on your tax return. | File an amended return if the information is correct. If it is wrong, contact the business or person who reported it. No date is printed on the IRS page. |
| CP215 | The IRS charged the taxpayer a civil penalty. The notice explains the due date, amount due and payment options. | Read the notice; contact the IRS if you disagree. The due date is the one printed on your notice. |
| CP277 | The IRS accepted the Form 8832, Entity Classification Election. Acceptance is based on the accuracy of the information provided. | File the return that matches your entity classification election, notify the IRS if your address changed, and keep the notice. |
| CP32A | The taxpayer did not cash a refund check and it expired. | Call the number on the notice to get a new check; destroy the old check if you still have it. |
| CP45 | The IRS could not apply the taxpayer’s overpayment to next year’s estimated taxes as requested. | Read the notice, update your own copy of the return, and adjust current-year estimated payments. No date is printed on the IRS page. |
| CP518 | A final reminder: the IRS still has no record that the taxpayer filed prior year tax returns. | Respond immediately: file the return with Form 15103, or complete Form 15103 to explain why you don’t have to file. |
| CP297 | The IRS is giving notice of its intent to levy certain assets for unpaid taxes. The taxpayer has the right to a Collection Due Process hearing. | Read the notice, pay what you owe or request a payment plan. To disagree, request a Collection Due Process hearing on Form 12153. |
| CP3219N | The IRS didn’t receive a tax return and calculated tax, penalty and interest from income reported by third parties. The CP3219N is a Notice of Deficiency (90-day letter). | Challenge: petition the Tax Court within 90 days (150 outside the U.S.) of the notice date. Otherwise sign and return the response form and pay, or file your return by the date shown. |
| CP259 | The IRS shows the taxpayer is required to file a tax return for the periods on the notice but hasn’t. | File the required business return immediately; if you think you’re not required to, complete the Response form. You may disregard it if you filed within the last four weeks with the same name and EIN. |
| CP256 | An installment payment is due for the taxpayer’s IRC section 965 tax liability. | Make your annual installment payment on time as required by IRC section 965(h). The due date is the one on your notice. |
The notice number is printed on the notice itself, usually in the top right corner. Use the number exactly as printed; the table follows the IRS page for each number.
What the IRS says the notice is
“The installment payment is due for your IRC section 965 tax liability.”
What the IRS page says to do
Make your annual installment payment on time as required by IRC section 965(h).
If you can’t pay the full installment
The IRS FAQ asks whether you will be penalized and answers yes: you may be penalized for failure to pay, and the full amount of your net tax liability may become due immediately.
Overpayments on the liability
The IRS FAQ answers a question about electing that an overpayment of your installment be credited to a later tax year or refunded when you have an outstanding balance on your section 965 liability by pointing to the IRS’s questions and answers on section 965 reporting for 2017 returns (question 14) and for tax year 2018 reporting and payments (questions 3 and 4).
If you disagree
The IRS FAQ says to call the toll-free number listed on your notice to review your account with a representative, with your account information available.
More IRS notice pages
Other pages in this set: CP40, CP2057, CP215, CP277, CP32A, CP45, CP518, CP297, CP3219N, CP259. For the codes on an IRS account transcript, see the IRS transcript codes lookup. For how interest and penalties are worked out on a balance, see the IRS penalty and interest calculator.
Sources
- Understanding your CP256 notice, Internal Revenue Service: what the notice is, what to do, FAQ. Page last reviewed or updated December 13, 2025. Read November 2, 2026.
This page restates what the IRS page says and adds nothing beyond it: no timelines, outcomes or advice that the IRS page does not state. The IRS can change a notice page at any time; the notice you received controls, including its response date and contact details.
Frequently asked questions
What does an IRS CP256 notice mean?
The installment payment is due for your IRC section 965 tax liability.
What does the IRS say to do after a CP256?
Make your annual installment payment on time as required by IRC section 965(h).
Will I be penalized if I can’t pay the full installment by the due date?
The IRS page says yes: you may be penalized for failure to pay, and the full amount of your net tax liability may become due immediately.
What should I do if I disagree with a CP256?
The IRS page says to call the toll-free number on your notice to review your account with a representative, with your account information available.
Can an overpayment of my installment be credited to a later year or refunded?
The IRS page points to its questions and answers on section 965 reporting (2017 returns, question 14; tax year 2018, questions 3 and 4) for this.
Not tax or legal advice
This page summarizes IRS notice pages and is not tax, legal or financial advice. It does not tell you how to respond to a notice beyond what the IRS page states. The notice you received controls. A CPA, enrolled agent or tax attorney, or the IRS number printed on your notice, can confirm what applies to you. Everything runs in your browser; nothing you enter is sent anywhere.