Last Updated on 05/15/2024 by Christian Collins
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.