The title of Notice CP521 is, "Your installment payment". The IRS sends Notice CP521 to remind you of your installment agreement payment by check you must make according to a payment agreement you established with them. Three possible problems are: 1) you lost the Notice & need the IRS address to mail your payment, 2) you don't agree that you owe the IRS or, 3) you can't make the payment.
Recently, the IRS has been sending "reminder" Notices CP54V for self-employed taxpayers who elected to delay their Self-employment tax payments because of the pandemic.
If you agree
Use the clip-off coupon on the bottom of the Notice CP521 showing the address to send your payment. If you lose the Notice you can get the addresses to send payments online. You may also make payments electronically.
If you disagree
If you don't agree that you owe this tax, you need to order your "Account Transcripts" and "Wage and Income Transcripts" for the years or periods at issue. Then, with your returns, we can re-construct exactly what led to the assessment.
If you can't pay
If you can't make a payment, pay them as much as you can. Then, you can call them & either obtain an extension to pay or re-negotiate your payment plan. If you choose to re-negotiate the IRS will require you to complete and provide them all the information required by Form 433A or Form 433F. This can take a lot of effort. Our Webinars show you the tricks & traps of preparing these forms.
But, that 's not the end of the case. Once the payment plan or tax debt is re-negotiated we need to find creative ways to reduce or mitigate the debt through a debt re-structuring and/or considering the 10 year statute of limitations on collections. You also should look into the possibility of a Penalty Abatement Request.
Later, the IRS may send you a Notice CP522 stating they are "reviewing" your agreement. You can expect to complete another Form 433.
Please follow the Prep Steps & contact our Colorado Springs, Pueblo or Denver offices so we can gather the IRS file & prepare an Action Plan for you to dissolve this tax debt.
Various IRS Notices CP521:
