IRS Notice CP521 is a reminder notice sent to taxpayers who are enrolled in an Installment Agreement with the IRS. This notice is typically sent each month to remind taxpayers that their scheduled payment is coming due. The notice includes the payment amount, the due date, and the total remaining balance on the Installment Agreement.
The notice is an important tool for taxpayers to stay compliant with their payment plan, as missing a payment or failing to respond to the notice could result in the termination of the agreement. If an Installment Agreement is terminated, the taxpayer may face more aggressive IRS collection actions, such as wage garnishment or levies.
Taxpayers who are unable to make a payment on time should contact the IRS to discuss options for modifying their agreement or request a temporary delay in payment. It’s important to remain proactive and address any issues before they result in further penalties or interest.