The IRS offers a number of tools to help taxpayers manage their tax debt – the team of experts at Optima Tax Relief reviews what the IRS’s CP521 Notice means for taxpayers who participate in an IRS installment plan
Each year, more than 3 million taxpayers get into a payment plan agreement with the IRS as a way to mitigate the long-term impacts of tax debt delinquency. But what can taxpayers expect after they have qualified for an installment payment plan with the IRS? The team of tax experts at Optima Tax Relief reviews some of the key points to consider as you work through your installment plan payments and eliminate that tax debt for good.
One key document all IRS installment plan participants should be aware of is the IRS’ CP521 Notice. The IRS uses this notice as an official reminder that there is an outstanding installment agreement payment now due as part of the terms of your payment plan. One of the main benefits of enrolling in an IRS installment plan is the ability to decrease failure-to-pay penalty amounts. However, if you receive a CP521 from the IRS, and do not follow up with a payment, this could not only result in potentially defaulting on your installment plan but can also trigger additional interest rates and late payment penalties.
One way to ensure that you remain compliant with your IRS installment plans’ terms and agreement is to take advantage of the IRS’ automatic payment program. Electing to participate in autopay not only ensures a payment is never missed, but the IRS may also offer you other cost-reducing benefits for taking advantage of the automatic recurring payment feature. Of course, if you have any questions about your IRS installment plan, or any installment plan specific notices you receive from the IRS, you should contact the IRS Customer Service number listed at the top of all installment plan notices and documents.