CP 521 IRS Notice: Installment Agreement Reminder Notice

This IRS notice is one page in total and is sent to remind the taxpayer that a payment is due on their installment agreement. The penalties and interest will accrue and are calculated to the due date of the notice. The interest will continue to build until the balance is paid in full.

A two-digit code is assigned to the notice in the format of "aa", "bb", "cc", "dd", "ee", "ff", etc. and each code represents a penalty. There will be a maximum of eight codes only shown on the account. Once you have figured out which codes are on your notice, you can begin to understand what they stand for.

A Notice 746 may also be enclosed. This notice lists the percentage rates applicable to underpayment and overpayment of taxes. Also listed on this enclosure is the tax periods and what interest rate applies to that specific period of time.

If you receive this CP 521 IRS Notice notice in the mail, it is a very important reminder that you need to make your payments. If you default on your installment agreement, the consequences could be devastating to your finances and credit. It is wise to contact your tax attorney immediately and find out what your options are and to work out an alternative if you are not able to make your payments or are having financial difficulties.