What to Do When the IRS Terminates Your Installment Agreement

Oh, no! You’ve gone and missed a payment and now the IRS has sent you Notice CP523, Installment Agreement Default Notice—Notice of Intent to Levy. What can you do?

Not to worry. If your letter from the IRS is dated less than 30 days ago, you have time to call the toll-free number printed on the top of your letter and see what can be done to resolve the issue. Though you do have 30 days from the date of the notice, it’s best to call immediately. The IRS is usually helpful and will discuss your options to reinstate your installment agreement.

If after speaking with the IRS, they are unable to help you and are still going to terminate your installment agreement, you can request to speak with a manager.  Once you have discussed your case with a Collections manager, if you disagree with their decision, you can request that the manager forward your case to IRS Office of Appeals for their review under the Collection Appeals Program (CAP).  However, if you do ask for a CAP Appeal, the decision will be final and you cannot seek judicial review in Tax Court should you disagree with Appeals’ decision.

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Written by Robert V. Boeshaar

Robert V. Boeshaar

Robert V. Boeshaar is a Seattle tax attorney committed to helping individuals and small businesses who are facing problems with the IRS. He believes in using his experience to serve others and to make a difference in their lives.