Did You Miss an Installment Payment to the IRS?
Many people who owe back taxes do not have the funds to pay their debt in full at one time. Fortunately, the Internal Revenue Service (IRS) commonly agrees to allow you to pay your tax debt in installments over a period of time. Generally speaking, the payment should be reasonable based on your financial situation. However, there may come a time when you cannot make a payment or otherwise fail to send payment.
If you fall behind on your tax installment agreement, the IRS will send you a notice called the CP523 notice. This letter will include specific pieces of information, including the following:
- That the IRS intends to terminate your installment agreement due to default
- The amount owed to prevent termination including penalties and interest
- The date by which you must pay that amount to avoid termination
- Contact information for the IRS
If your circumstances allow you to make the payment by the termination date, you will be able to continue your installment plan. However, in many cases, you may have missed payments because your financial circumstances have changed and you cannot afford to resolve the default by the date required.
If you cannot pay the amount owed, you should consult with an experienced tax attorney regarding your options. An attorney can help you contact the IRS and explain to the agency why you can no longer afford the payments mandated by your installment agreement. In such cases, the IRS may agree to a different and more feasible arrangement. If your installment plan has already been terminated, an attorney can help you get it reinstated, which requires a reinstatement fee to the IRS.
If you fail to respond to the CP523 notice, you can face significant penalties and interest, and the IRS may soon levy your bank accounts or your wages to obtain the money owed.
Find Out How a Chicago Tax Defense Attorney Can Help You
It is important to never ignore a notice from the IRS. Instead, call an experienced IRS relief lawyer at Attorneys Tax Relief. We are here to help you resolve issues with back taxes, so call today at 800-819-6866 for more information.