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CP523H notice: what it means and what to do
Got an IRS CP523H notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP523H notice freeWhat the IRS says this notice is about
We are notifying you that your installment agreement for the Shared Responsibility Payment (SRP) balance will be terminated unless payment is received.
What you need to do
You must pay the amount you owe immediately but no later than 30 days from the date shown on your notice to keep your installment current.
- Read your notice carefully. It explains that you have defaulted on your installment agreement and the actions you must take to bring your account current.
- Go to the Payments page to make a payment or learn about the other payment options available.
- See if you qualify for an offer in compromise (OIC) which would allow you to settle your tax debt for less than the full amount you owe.
- Request a temporary collection delay if you’re experiencing financial hardship.
- Contact us immediately at the phone number shown on your notice if you can’t pay the full amount you owe. We may be able to reinstate or restructure your installment agreement - fees may apply.
- Alternatively, you can contact us by using the Document Upload Tool to securely upload your written response and supporting documentation. You must enter the access code provided on your notice or letter to use the tool and your response must be received within 30 days of the date shown on your notice.
- If you can’t send your documents by the Document Upload Tool, mail your documentation along with a copy of your notice to the address provided in the “Additional Information” section of your notice.
Your deadline
The IRS page for this notice mentions 30 days. Always use the date printed on your own notice.
What to check before you answer
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
- Review this notice with a tax professional.
- View additional information about your tax account .
- Review Publication 5187, Affordable Care Act: What You and Your Family Need to Know PDF .
Common questions
What is the notice telling me?
That we intend to terminate your installment agreement which includes your shared responsibility payment (SRP) and why we’re taking this action.
What is the Shared Responsibility Payment?
The shared responsibility payment (SRP) is the amount you owe for not having minimum essential health coverage for yourself and other members of your tax household or qualifying for an exemption from coverage per Internal Revenue Code section 5000A - Individual Shared Responsibility Payment.
What if I don't agree or have already taken corrective action?
If you don't agree with our reason for terminating your installment agreement, call us at the number on the top of your notice.
If you've already taken corrective action, you should still call us to make sure we have a record of your action so we can reinstate your installment agreement.
Will I be charged interest on the money I owe?
We are required by law to charge interest when you don’t pay your liability on time. Unlike penalties, we cannot reduce or remove interest due to reasonable cause. Interest accumulates daily, so the longer you wait to pay, the more interest we add to your account. Visit irs.gov/interest for more information. See your notice for more information on the interest that may have been applied to your account.
Will I receive a penalty if I cannot pay the full amount?
No, penalties do not apply to the SRP. The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you.
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