What CP522 means
CP522 tells you the IRS is reviewing your installment agreement and needs updated financial information. You have to call by the date on the notice. If you don't, the IRS says it will terminate the agreement and bill you for the full amount you owe.
This is not a default notice. You did not miss a payment. It is a scheduled check-up, and it is one you agreed to when the agreement was set up.
Why you got it
The IRS page for CP522 says the review exists to set the correct monthly payment. It also says you agreed to the review when the IRS granted an agreement for less than the minimum payment usually required. In the IRS's internal procedures, that describes a partial payment installment agreement, where the monthly amount will not pay the full balance before the collection statute expires. The IRM refers to a two-year financial review for those agreements and says taxpayers may receive either CP522 or CP522P, then should call the number on the notice to provide the requested information.
The idea is simple. When your payment is based on your ability to pay, the IRS wants to see whether that ability has changed.
The deadline
Use the date on your notice. It is the date by which you must call.
The IRS is specific about how to respond: call, do not mail. Its page says if you mail Form 433-F, it will not be received in time to prevent the agreement from being terminated.
Federal law also protects you here. IRC 6159(b)(5) says the IRS may not terminate or change an agreement for a change in financial condition or a failure to provide a requested financial update unless it gives you notice at least 30 days before the action, with an explanation of why. CP522 is part of that process. Treat the date seriously.
The agreement is only as good as your answer to this notice. One phone call keeps it alive.
How to prepare for the call
The IRS tells you to download and complete Form 433-F, Collection Information Statement, with your current income and expenses, including any supplementary items the form references. You fill it out for yourself so you can answer questions accurately on the phone.
- Income. Gather recent pay stubs, benefit statements, and business income records for every household earner the form asks about.
- Expenses. Pull housing, utility, vehicle, insurance, health care, child care, and court-ordered payment records.
- Assets. List bank balances, retirement accounts, vehicles, real estate, and anything else the form requests.
- Changes. Write down what has changed since the agreement started: a new job, a lost job, a medical bill, a new dependent.
Then call. The IRS page lists 800-831-0273 for these reviews. Confirm it matches the number on your notice.
What can happen after the review
The IRS says your payment may decrease, increase, or stay the same. If your income went up, expect the IRS to ask for more. If it went down or your necessary expenses rose, explain that with documents.
IRC 6159(b)(3) allows the IRS to alter, modify, or terminate an agreement when it determines your financial condition has significantly changed. IRC 6159(b)(4) allows the same if you fail to provide a requested financial update. That second reason is the one CP522 is warning you about, and it is entirely within your control.
What happens if the agreement is terminated
A terminated agreement means the full balance becomes the target of collection again. The IRS page says it may bill you for the entire balance, and if it sets up a new agreement later, you may owe another user fee.
There is a short safety net. Under IRC 6331(k)(2), the IRS generally may not levy while an installment agreement is in effect, and if the IRS terminates the agreement, it generally may not levy during the 30 days after termination, or while a timely appeal of the termination is pending. A termination notice usually comes as a CP523. You do not want to be reading that one.
What to do now
- Write the call-by date on your calendar.
- Complete Form 433-F for your own reference.
- Gather the documents behind every number.
- Call the number on the notice before the deadline and take notes: date, time, employee name or ID, and what was agreed.
- Keep making your current payment while the review is pending.
What not to do
Do not mail the form and assume you are done. The IRS has told you it will not arrive in time.
Do not stop paying because a review is underway. A missed payment creates a second problem on top of the first.
Do not guess at numbers. If what you say on the phone does not match your documents later, you create a credibility problem with the people deciding your payment.
Consider whether a different option fits now
The IRS page for CP522 suggests considering alternative ways to pay that may not have been available when you signed up. That is good advice. If your finances have collapsed, a hardship status or an offer in compromise may make more sense than a reduced payment. If they improved, paying the balance faster cuts penalties and interest. Our guide to installment agreement letters covers the related notices.
Keep the agreement in good standing everywhere else
The financial review is not the only way an agreement gets into trouble. IRC 6159(b)(4) also lets the IRS modify or terminate an agreement if you fail to pay any other tax liability when it is due. That means the current year matters as much as the old balance. File every return on time. Pay what you owe with the return, or adjust withholding or estimated payments so you don't create a new balance. An agreement that survives the review can still be lost to a new unpaid year.
If you moved, update your address with the IRS. A review notice that goes to an old address does not stop the deadline from running.
The law behind CP522
IRC 6159 authorizes installment agreements and lets the IRS modify or terminate them for a significant change in financial condition or a failure to provide a requested financial update, but only after at least 30 days' written notice with an explanation. IRC 6331(k)(2) restricts levy while an agreement is in effect and for 30 days after the IRS terminates it. IRM 5.19.1 describes the CP522 and CP522P review notices, and IRM 5.14.2 covers partial payment agreements.
If you want help preparing your numbers before the call, call us at (813) 229-7100.