What This Notice Means
CP89 is the Annual Installment Agreement Statement. The IRS sends it every year to taxpayers who have an installment agreement (payment plan). The law requires the IRS to send it. It is a statement for your records. It is not a bill and it does not mean anything is wrong.
The statement shows:
- Your balance at the start of the year
- Each payment you made during the year
- Which tax years your payments were applied to
- Penalties, interest, and other charges added during the year
- Your remaining balance at the end of the year
What to Do
- Compare the payment list to your bank records. Every payment should be there.
- If a payment is missing, call the number on the notice. Have the date, amount, and proof of payment ready.
- Keep making your monthly payments on time. This notice does not change your agreement.
- Keep the notice with your tax records.
Why the Balance Is Still High
Penalties and interest keep running while you are on a payment plan. That is why the ending balance may have dropped less than the total you paid. If the balance shown doesn't include all penalty and interest charges, and you want a payoff amount that does, call the number on the notice.
Protect the Agreement
Your payment plan stays in place only if you keep paying on time and stay current. That means filing future returns on time and paying future taxes when due. Missing payments or running up a new balance can put the agreement in default.
If your situation has changed and you can't keep up with the payment, contact the IRS before you miss a payment. It is easier to revise an agreement than to reinstate one that has defaulted.
If you have questions about your IRS payment plan or want to lower the balance, call us at (813) 229-7100.