What 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. 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. Frequently asked 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. Tips for next year Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file. Review Publication 5187, Affordable Care Act: What You and Your Family Need to Know PDF. Reference tools Publication 1, Your Rights as a Taxpayer Publication 594, The IRS Collection Process PDF Publication 1660, Collection Appeal Rights PDF Notice 746, Information About Your Notice, Penalty and Interest PDF Paying your taxes Full list of tax forms and instructions Need help? You can authorize someone to represent you before the IRS or inspect and/or receive confidential tax information. You may be eligible for free help from the Taxpayer Advocate Service (TAS). See if you qualify for help from a Low Income Taxpayer Clinic. You can request a copy of your notice or letter in Braille or large print. If you can’t find what you need online, call the telephone number on your notice or letter.
