IRS notice
IRS Notice CP521: Your Installment Payment Is Due
A reminder that your monthly IRS payment plan installment is due by the date shown, with the amount and how to pay it.
Reply by the date on the notice
Your payment is due by the date printed on the notice; paying on time keeps the installment agreement in good standing.
A CP521 (or CP521 SP, or CP621) is generally a reminder that a monthly payment on your IRS installment agreement is due by the date on the notice. Pay the amount shown by that date, online or by mail with the bottom portion of the notice. Missing payments can lead to default on the agreement.
What this notice is telling you
- You have an installment agreement, and the next monthly payment is coming due.
- The notice shows the amount due and the date it must arrive.
- Interest and penalties continue to accrue on the unpaid balance until it is paid in full, even while the plan is in effect.
- If payments are missed, interest and penalties increase and you could default on the agreement.
What to do
Check the amount and due date
Compare them with your agreement. If the amount looks different from what you agreed to, call the number at the top of the notice before paying.
Pay by the due date
Pay online through the IRS payments page, for example with Direct Pay from a bank account or through EFTPS, or mail a check in the envelope provided.
If mailing, include the payment stub
Send the bottom portion of the notice with your check so the IRS credits the payment to the right account and period.
Change the plan before you miss a payment
If the monthly amount or date no longer works, you can revise the plan through your IRS Online Account, including the payment date, amount or plan type. If you can't pay at all this month, contact the IRS before the due date.
If paying each month by mail is the problem
A CP521 arrives because your plan is billed by notice each month. Converting to a direct debit installment agreement, where the IRS withdraws the payment from your checking account automatically, can be done in your Online Account by entering your bank routing and account numbers. It removes the risk of a check arriving late, which is one of the easier ways to slip into default.
If the amount no longer fits your budget
Through the Online Account you can lower the monthly amount, but only down to the required minimum for your balance. If you can't meet the minimum, the IRS asks for a collection information statement (Form 433-F, 433-H or 433-B) so it can look at your income and expenses. Contacting the IRS before a missed payment is very different from contacting it after a default notice has been issued.
What a missed payment leads to
| Notice | What it signals |
|---|---|
| CP521 | Routine reminder that a monthly payment is due |
| CP523 | You have defaulted; the IRS intends to terminate the agreement and levy |
Default can also come from things other than a missed payment, such as not filing a current return or running up a new balance while on the plan. Keeping current-year withholding or estimated payments on track protects the agreement as much as the monthly check does.
Where this notice sits
- CP521
- CP523
The usual order. Not every account gets every notice, and some steps can be skipped.
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
IRS & SCDOR letters — Find your notice number below, see what it means and which date matters, then let a licensed CPA deal with the IRS or SCDOR on your behalf.
Sources
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about CP521
Do I still owe interest if I make every payment on time?
Yes. Interest and some penalties keep accruing until the balance is paid in full. Paying more than the minimum when you can reduces what accrues.
Can I change my payment date?
Yes. The IRS lets you change the payment date, monthly amount or plan type through your Online Account. If you can't revise it online, call the number on the notice.
What if I already paid this month?
Payments can take time to post. If you paid recently, check your Online Account balance. If the payment has posted, no further action is needed for that month.
Can I stop getting these reminders on paper?
The IRS says you can view and download notices in your Online Account, go paperless for certain notices, and sign up for email notifications. Paying by direct debit also avoids the need to mail a check each month.
Other notices
- CP71C: Annual reminder of a balance you still oweAn annual IRS reminder of the tax, penalties and interest you still owe, with a warning about passport denial for seriously delinquent debt.
- CP14: Balance due on your tax accountThe IRS's first bill after a return shows tax that was not fully paid: the amount, the due date and how to pay.
- IRS notice lookupEvery IRS notice carries a code. Find yours below to see what it generally means, which date matters, and what to do before that date passes.
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