- What it means
- The IRS could not process a scheduled direct debit for your business installment agreement.
- Respond within
- 30 days from the date on the notice
- What to send
- Make the missed payment and correct the bank information.
- When to get help
- If two payments fail, expect a CP523 default notice.
What the letter says
The bank rejected the debit: insufficient funds, closed account, or a changed account number.
What to do
Pay the missed amount another way immediately, then update the bank details for the agreement.
What to gather
- The notice
- Bank records for the debit date
- The agreement's bank authorization
Write back
The Payment plan request cover letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.