IRS Installment Agreement in Default – CP 523 – Get back into system
If have currently defaulted your current installment agreement and need to get back in the system contact us today.
We can usually call the IRS and modify, change or get your installment agreement reinstated.
Other options besides Installment Agreements
IRS will require a 433A or a 433 F to close any open case that is in the system. You where on a installment agreement because your financial statement dictated that you would be able to make those monthly payments. Many times the IRS string arms you into making those payments with you have professional representation you agreed in fear of the IRS.
Do not be bullied by the IRS.
You may be eligible of a IRS Hardship or a IRS Offer in Compromise Tax Settlement.
Call us today 1-866-700-1040 and learn more about IRS options.
The IRS System and Policy on Reinstatement
IRS considerations after Default or Termination, Including Reinstatement of your installment agreement.
A IRS Revenue Officer or IRS ASC tax examiner is contacted in response to a defaulted or terminated installment agreement notice, appropriate action should be taken based on the circumstances of the case.
Sometimes these occur at the ASC Unit or in the local IRS office.
Before the IRS will reinstate a defaulted or terminated agreement, the IRS will consider the following:
1. the taxpayers reason for default or termination,
2. the taxpayers ability to pay see IRM 5.14.9.2 for managerial approval requirements on defaulted or revised installment agreements,
3. Will check in the the statute expiration date to see if the expiration is eminent,
4. After contacting the taxpayer they will update levy sources, address, and telephone numbers,
5. IRS will strive for a payroll deduction agreement or Direct Debit Installment Agreement,
6.They will validate there necessity of filing or refiling a Notice of Federal Tax Lien,
7. Check to see if the taxpayer is in compliance with estimated tax requirements and or has adequate withholding,
Defaulted Agreements Process
When a taxpayer does not meet the terms of an installment agreement, she or he will be notified in writing and given 30 days to comply with the terms of the agreement before the agreement is terminated.
A taxpayer with an CADE 2 monitored installment agreement will receive Notice CP 523, Defaulted Installment Agreement — Notice of Intent to Levy.
The notice or letter is sent by certified mail for taxpayers with domestic addresses, or by registered mail if taxpayers have foreign addresses.
For taxpayers filing jointly, the notice or letter will be sent to both spouses separately, even if the spouse live at the same address.
Defaulted Agreement Notices
Defaulted Installment Agreement notices must be provided for all defaulted agreements including those proposed terminations because the taxpayer provided inaccurate or incomplete information prior to entering into the agreement.
An account on which the taxpayer has received Notice CP 523 or Letter 2975 (DO) is commonly referred to as a defaulted agreement , but the IRS agreement will not be terminated until the expiration of the 30 day period beginning on the date the notice is issued.
No IRS tax levies may be issued on tax periods included in agreements for 90 days after mailing Notice CP 523 or Letter 2975 (DO).
IRS Installment Agreement in Default – CP 523 – Get back into system
