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CP523 Notice: Protecting Your Installment Agreement and Avoiding Asset Seizure

Receiving a CP523 Notice from the IRS can be unsettling, as it indicates that you have defaulted on your installment agreement and the IRS intends to terminate the agreement and potentially seize your assets. Understanding the implications of this notice is crucial to taking immediate action and preventing adverse consequences. In this blog post, we will delve into the details of the CP523 Notice, explain why it matters, and provide valuable tips on how to respond. Priority Tax Relief, a trusted tax service provider, is here to guide you through the process and help you navigate this situation effectively.

CP523 Notice: What It Means and Why It Matters

The CP523 Notice serves as an official notification from the IRS that you have defaulted on your installment agreement. The notice outlines the IRS’s intent to terminate the agreement and potentially seize (levy) your wages and/or bank accounts if you fail to take prompt action. Additionally, the notice highlights the denial or revocation of a United States Passport as a consequence of seriously delinquent tax debt, in accordance with the Fixing America’s Surface Transportation (FAST) Act legislation.

Essential Steps to Take When You Receive a CP523 Notice

1. Make your payment before the termination date

To prevent the termination of your installment agreement, it is crucial to make your payment before the specified termination date. Explore your payment options and visit the IRS payments page to ensure timely payment.

2. Contact the IRS immediately

Reach out to the IRS as soon as possible to explore the possibility of reinstating your installment agreement. Depending on your circumstances, you may need to pay a fee to reinstate the agreement or settle any new tax liability promptly.

3. Carefully review the notice

Take the time to read the notice thoroughly, as it provides essential instructions for addressing your defaulted installment agreement. Understanding the reasons behind the action taken by the IRS will help you navigate the situation more effectively.

4. Respond promptly to the notice

Failure to respond to the CP523 Notice can lead to the termination of your installment agreement and initiation of collection actions. This can include filing a federal tax lien or seizing (levying) your wages and/or bank accounts. It is crucial to take action to avoid these consequences.

Seek Professional Assistance and Ensure Compliance

Receiving a CP523 Notice can be a cause for concern, but by understanding its purpose and taking immediate action, you can protect your installment agreement and avoid asset seizure. Make timely payments, contact the IRS to explore reinstatement options, carefully review the notice, and respond promptly to ensure compliance.  Consider seeking professional assistance from Priority Tax Relief, your trusted tax service provider. Our expertise and knowledge can help you understand your options, provide guidance on responding to the notice, and ensure compliance with IRS requirements.

By taking the necessary steps outlined above and seeking professional assistance, you can protect your installment agreement, prevent asset seizure, and address your tax obligations effectively.

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FAQs

 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.

 

Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

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