What This Notice Means
You defaulted on your installment agreement for a Shared Responsibility Payment (SRP) balance. The IRS intends to terminate the agreement unless it receives payment. The notice explains why and what you need to do to bring the account current.
The SRP is the amount owed for not having minimum essential health coverage for yourself and members of your tax household, or qualifying for an exemption, under Internal Revenue Code section 5000A.
What to Do
Pay the amount you owe right away, and no later than 30 days from the date on your notice, to keep the installment agreement current.
If you can't pay what's due:
- Call the number on your notice immediately. The IRS may be able to reinstate or restructure your agreement. Fees may apply.
- Or upload a written response and supporting documents through the IRS Document Upload Tool, using the access code on your notice. It must be received within 30 days of the notice date.
- If you can't use the upload tool, mail your documents with a copy of the notice to the address in the notice's "Additional Information" section.
- See whether you qualify for an offer in compromise, or request a temporary collection delay if you're in financial hardship.
If You Disagree or Already Fixed It
If you disagree with the reason for termination, call the number at the top of your notice. If you already took corrective action, call anyway so the IRS has a record and can reinstate the agreement.
Interest and Penalties
Interest is charged by law and accrues daily. It can't be removed for reasonable cause. Penalties do not apply to the SRP.
Liens, Levies, and Refunds
The law prohibits the IRS from using liens or levies to collect an individual shared responsibility payment. But the IRS can apply your tax refunds to the SRP balance. So a terminated agreement won't mean a wage levy, but it will mean your refunds keep going to this debt and interest keeps growing.
If you received a CP523H and need help keeping or restructuring your plan, call us at (813) 229-7100.