What this notice means
You have an installment agreement with the IRS, and your next monthly payment is due by a specific date. This notice is your reminder.
While the plan is in place, the IRS still charges interest and any penalties that apply until the balance is paid in full. If you filed your return on time, the late payment penalty drops to 0.25% a month during the plan, instead of the usual 0.5%.
Why you got it
- You set up a monthly payment plan, called an installment agreement, with the IRS.
- Your next payment under that plan is coming due.
What to do now
- Read your notice. It's a reminder of the payment amount and due date.
- Pay by the due date. You can mail your payment in the envelope provided, along with the bottom part of the notice, or see the IRS payments page for other ways to pay.
- If you have questions, call the number at the top of your notice.
If you don't respond
If you don't pay, the interest and penalties you owe will grow, and you risk defaulting on your installment agreement. A default can lead to a CP523, which says the IRS intends to end the agreement.
Questions people ask
Do I still owe interest while I'm on a payment plan?
Yes. The IRS keeps charging interest and any penalties that apply until you pay the balance in full. If you filed on time, the late payment penalty is reduced while the plan is in effect.
What if I can't make this payment?
Contact the IRS right away. The IRS asks anyone who can't meet the terms of their payment plan to reach out immediately.