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Resolving a CP 523 Notice from the IRS

Tax Consultation, Tax Negotiation and Settlement

If you are on a payment plan with the IRS and fall behind on your balance due, you may receive an IRS Notice CP 523. This is your official notice that the IRS plans on moving forward with seizing your assets, including tax refunds, paychecks, or any other form of property you own. If this sounds intimidating, don’t panic just yet. Understanding exactly what the notice is and what options you have is going to be critical to getting your account back on track.

What is a CP 523?

The IRS describes the CP 523 as a formal notice of “our intent to terminate your installment agreement and seize (levy) your assets.” Essentially, you agreed to a set payment plan and failed to honor the terms of that plan and your account is now considered in default status. As a result, the IRS will move forward with seizing your assets or imposing a tax lien on your property, usually after 90 days. Review the document carefully, as there are several different reasons why you may be receiving this notice such as:

  • You have missed several payments and have not been in contact with the IRS
  • Failure to pay the full amount due by the required due date
  • Not filing a tax return
  • Failure to provide additional financial information or giving false information
  • Receiving an updated balance that differs from the original agreement

What Should I Do?

Although the notice states intent to seize your assets, a taxpayer usually has 30 days to respond. If you can afford to do so, make a payment before or by the due date. This will usually put you back in good standing before your installment agreement is terminated. If you filed a recent tax return that gave you an updated balance, this will automatically put your account in default status. In this case, be sure to contact the IRS immediately to see if they can restructure the tenets of your current payment plan. And even if you believe you received the notice by mistake or don’t agree, it is imperative to contact the IRS. Every notice contains a toll-free number so that you can resolve the issue with your account as soon as possible. Being proactive will prevent you from being charged harsh penalties in addition to your existing balance.

Although dealing with the IRS can seem daunting, ignoring the problem will only cause it to grow. Many issues can be resolved with a simple phone call or payment. If you have read this article and still have confusion on how to proceed, it is important to get in contact with a tax professional immediately. Civic Tax Relief has helped many other people in your position. Your peace of mind is our #1 priority. Please call us today!