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IRS Notice CP 523-Notice Of Default On An Installment Agreement

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IRS Notice CP 523-Notice Of Default On An Installment Agreement

IRS Notice CP 523-Notice Of Default On An Installment Agreement

IRS uses CP 523 notice to inform you that they are terminating your installment agreement. Remember, when you setup an installment agreement with the IRS you promise to pay a particular amount of money every month, remain in compliance (file returns timely) and not increase the current balance. The Notice provide the reason of termination. Common reasons include: you missed a payment, you did not file a tax return, and/or you have increased the balance due.

What Should I do First, If I Receive An IRS Notice CP 523?

First of all you should make sure that the notice is accurate.  If it is accurate and you do not want your installment agreement to be terminated, you need to call the number on the notice and explain reason for the default. You will also want to explain what you are planning to do to avoid a reoccurrence.

When Should I Respond To The IRS Regarding CP 523?

As with an notice you want to be proactive.  You have 30 days from receiving a CP 523 notice to contact the IRS.

What If CP 523 Was Erroneously Sent?

If you do not agree with the CP 523, you will want to preparer a letter of dispute and attach any supporting documentation. Of course, nature of the dispute has a lot to do with the action that you can take. If the nature of the dispute is extremely complex, you may need to seek representation.

If you feel that your installment agreement is being terminated wrongfully you have the right to appeal.

IRS Notices and Letters | What They Mean & What To Do About Them

IRS Notice CP 161- Request For Payment Or Notice of Unpaid Balance

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