What it means
A yearly summary of your payment plan: payments received, interest and penalty added, and the remaining balance.
Respond within
The date on the notice
What to send
Nothing, unless the statement is wrong.
When to get help
If the balance is not shrinking, your payment may be less than the monthly interest and penalty; call and revisit the plan.

What the letter says

The plan's annual accounting. It is required by law and does not change your status.

What to do

Compare the payments listed to your bank records. If any are missing, send proof. Watch the balance trend; a plan that only covers interest never ends.

What to gather

  • The statement
  • Your payment records for the year

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.

Sources

  1. IRS, Understanding your IRS notice or letter
  2. IRS, Understanding your CP523 notice
  3. IRS, Payment plans and installment agreements