Ignoring IRS notices is never a good idea, especially if you’ve already reached an installment agreement with the IRS. If you enter into an installment agreement and then fail to make a payment, you will be issued IRS CP523 Notice – Intent to Levy & Terminate Your Installment Agreement. This notice is typically delivered via certified mail.
Why Did I Receive A CP523 IRS Notice?
The IRS sent you a CP523 “Notice to Intent To Levy Intent to Terminate Your Installment Agreement” notice because they did not receive one or more tax payments from you, as your installment agreement requires. If you’re not able to make the required monthly payments within 30 days from the date of your IRS notice, the IRS will terminate your installment agreement and seize your assets or your state income tax refund or other property or rights to property and levy your wages to satisfy your unpaid tax debt.
What If I Ignore The CP523 Notice?
Ignoring a CP523 notice can lead to worse consequences. If the IRS hasn’t already filed a federal tax lien after the printed date on your IRS notice, they definitely will. If a lien is in place, it would be extremely difficult to sell or borrow against your property. Not only will a tax lien be
What If I’m Not Able To Afford My Monthly Payment?
If the payment amount in your installment agreement is no longer feasible, you can reach out to a Certified Public Accountant, IRS Enrolled Agent or even a tax attorney who will help you negotiate a new payment arrangement with the IRS to pay less than the amount you’ve been paying before. An $89 fee would be charged while initiating a new agreement with the IRS but it’s a lot safer along the line than ignoring the notice and allowing the fees and penalties to continue growing.
You’ve Got The Right To Request An Appeal!
Located on the top right of the IRS notice is the phone number that you’re able to call and reach out to if you’d like to request an appeal to the IRS Office of Appeals for any proposed termination of your installment agreement under the Collection Appeals Program. There’s also an IRS Form 9423, Collection Appeal Request, that you can fill out and send to the address at the top right of the notice to request an appeal.
If you don’t pay your installment agreement payment that you’ve made with the IRS, you’d have only 30 days to pay your payment in full, or else the agency will begin seizing your assets and garnish your wages. Not to mention, your tax debt will continue to grow and your penalties and interests are accruing all at the same time.
The IRS Fresh Start Program consists of 4 main programs that are accessible to taxpayers who owe much more than they can reasonably afford to pay. The four major programs are as follows: Currently Not Collectible (CNC) Offer In Compromise (OIC), Installment Agreement (IA), and Penalty Abatement (PA). These relief programs allow qualified taxpayers the option to reduce or even eliminate their tax debts. These tax experts will help you qualify for the program and help you figure out which options will give you the most suitable outcome. Especially if the agreed amount from the installment agreement that you’ve previously set up with the IRS is a bit harder to pay off these days. It is very important for taxpayers to remain tax compliant because it will save you interest and penalties on the current year and prevent you from a continuous circle of always owing tax.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.