IRS Notice CP523: Installment Agreement Termination & Levy Warning

Patrick Waletr

IRS Notice CP523 is a critical document sent to taxpayers who have entered into an installment agreement with the IRS but have failed to meet the terms of that agreement.

Transcript

00:00Hello, Jamie Flores with the Law Offices of Nick NamUs.

00:03I'm going over another notice today.

00:05Today it is the CP523, okay?

00:08This is a notice that the IRS is intending

00:11to terminate your installment agreement.

00:13So you've already owed balances,

00:15you set up an installment agreement,

00:16and now something has happened

00:18to where they're going to terminate

00:19the installment agreement.

00:21Usually it is you filed another return

00:24owing another balance owed,

00:25or you have not filed a tax return, okay?

00:28So either of those are the two main reasons

00:30why we see installment agreements default.

00:35The first page of this notice,

00:36it tells you that you may file

00:38a collection appeals program, CAP,

00:40a CAP appeal within 30 days of the date of this letter.

00:43It tells you how much you owe,

00:45the additional penalties and interest,

00:48and what you need to pay

00:51in order for your installment agreement

00:52to not be terminated, okay?

00:54So what is past due immediately

00:56and what the current balance is.

00:59The next page goes over the notice of intent to levy,

01:03that they intend to cancel

01:05your installment agreement for you,

01:07and that they can levy you.

01:09So what you need to do immediately,

01:11it goes over that information.

01:12Call them, set up a new installment agreement,

01:14or render your payment

01:17to keep this installment agreement active.

01:19If you can't pay, it gives you options,

01:22or if you disagree, it also gives you options.

01:25So maybe if there's a mistake on something,

01:27you can respond to this notice

01:29and get somebody to look at it,

01:31but don't not do anything,

01:33because then it will default,

01:35and then they can levy you.

01:37It also gives you the information about that levy,

01:39that they have authorizations to levy you,

01:41as long as they've previously given you notice

01:43for a final notice intent to levy.

01:45It talks about your payment options,

01:47that you can go online and set up a new installment agreement.

01:50It also discusses the passport revocation or denial,

01:53which is in another notice,

01:55but they've been adding that on to a lot of notices.

01:58If you owe more than $62,000,

02:00the IRS can revoke your passport.

02:03This is just additional information

02:04that you can contact Taxpayer Advocate Service

02:07if you need help,

02:08as well as low-income taxpayer clinics in your area.

02:11You can go to their website and find those.

02:14The next page talks about the penalties,

02:15as well as the interest that is accrued on the account.

02:19And additionally, the next page,

02:20it breaks down all of the periods

02:22and the interest that is accrued for that account.

02:24So again, STP 523 is the intent

02:28to terminate your installment agreement.

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