Cp523- The IRS notice you do not want to receive
Have you been served the CP523 notice by the IRS? Are you bothered about its consequences for your taxes? We’re here to tell you.
As you may already know, when you owe the IRS and are unable to make complete payments immediately, you have the option to arrange for a payment installment agreement. This means that you can consult the IRS, (Click here to get access to the best team of tax representatives with a free trial) make an arrangement with them based on your income and unique tax situation, and pay off your debts in small manageable amounts monthly.
The government always holds up their end of the bargain and the story ends well if you are able to maintain your part of the agreement and make payments until you are done paying up whatever you owe. However, we understand that it doesn’t always go like that.
Simply put, people get into tough financial situations which can affect their financial commitment in different areas such as their installment payment agreement with the IRS. They might have thought that the sum was a reasonable one at the time of the agreement, however, people fall into tough situations and thus may be unable to follow through with previously arranged agreements.
The IRS cancelled my installment agreement
Failing to pay the IRS as agreed leads to the accumulation of interests, penalties, and fees. And so, as if being in a tough financial situation wasn’t bad enough, you have to deal with the plaguing thoughts of the increasing debt you have.
If you have entered into arrangements with either federal or state taxation services, and you default on the IRS installment agreement along the way, you are going to get a notice of default letter.
This notice is always called Intent to Levy & Intent to Terminate Your Installment Agreement. As the name implies, the notice comes to notify you of the IRS’s intent to terminate installment agreement. It doesn’t stop there, the IRS cp523 is also informing you that the IRS intends to levy or seize your assets because you defaulted on the agreement you had with them.
Naturally, the Cp523 is one of the most unnerving and terrifying notices taxpayers usually receive from the IRS. It comes as a result of any form of breach of installment agreements.
How do people breach installment agreements with the IRS?
You may be thinking it’s impossible to default on IRS installment agreements since they’re usually billed automatically from the taxpayer’s account. However, there are few ways people still breach installment payment agreements, sometimes unintentionally.
- When there are insufficient funds in the account from which the IRS should deduct.
- When the credit or debit card the taxpayer registered with the IRS has expired.
- When the debit or credit card was changed by the taxpayer due to issues like fraud.
If any of the above is the case for you and you have now received a CP523 notice from the IRS, all you have to do is credit the account you have linked with the IRS and contact them to inform them. Alternatively, you can call the IRS to register the details of your new card, so that they can resume the installment payment. It is very important that you do this on time to avoid unpleasant consequences that could otherwise have been avoided.
What do when you receive the IRS CP523 notice
Ignoring an IRS notice is never a good idea. Especially not for a notice like the Cp523. Failure to take the necessary action on time can lead to you losing way more than you thought you could.
Thus, when you receive the IRS CP523 notice, you should take immediate action. The first thing you need to do is read the notice and understand what the IRS is trying to communicate to you. It also tells you what you can do to fix the situation.
If it was an unintentional breach of agreement, all you need to do is contact the IRS, let them know what happened, and make the money available to them.
You can also simply just make your payment by going to the payments page on the IRS website or you can contact us to find out about other payment options.
The IRS cp523 notice also has a deadline attached to it. You must contact the IRS before 30 days elapse.
In a case where you disagree with the IRS’ action, you can contact them to let them know you disagree with their reason for trying to terminate your installment agreement. To do this, it is advisable to hire the service of a tax professional to help defend you.
Lastly, if you have taken the necessary steps and made necessary changes, you should contact the IRS to ensure they have updated the corrections.
The IRS notice Cp523 is a rather serious notice and you should address with urgency. The IRS will take those actions against you if you do not act with speed and caution.
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