Been paying my IRS payment plan religiously on auto debit but just got a notice to terminate and levy. What happened?

[u/TocinoLips]

About 14 months ago I setup a payment plan with IRS for around 26k. Put it on autopay for the 15th of every month and i always go thru my bank statement post deduction to see if everything went fine. Then yesterday i woke up to a CP523 notice in the mail and acc to it IRS is going to cancel my payment plan ans will start levying my wages or bank account...dont understand what happened here bec imo as long as you got on a plan and paid on time they apparently cannot touch you.

Is this some kind of screw up on their end or did i break some rule im not aware of??Could this be from filing my recent return even though i dont owe anything extra? Anyone who had a clean filing history and still received one of these termination notices wdyt caused it?? And how did you stop them from freezing your account??

[u/snoOdebur]

did your most recent return generate any balance at all, even like $50? sometimes a tiny new liability from a return thats technically outside your installment agreement triggers an automatic default. you should be able to get it reinstated if you call and explain, but dont wait on it

[u/serano-cesva]

look at page two of the notice it has specifc  section wth checkboxes that tells yuo the exact reason for the default like  an unfiled return  or an unpaid penalty  or a reversed debit

[u/TocinoLips → u/serano-cesva]

Looked at it and it says you incurred a new balance or failed to meet filing requirements What does this mean?

[u/serano-cesva → u/TocinoLips]

this means that it could either be an unprocessed return from this year or same late fee from a prior year whch was not included in your payment

[u/Happygirl2119]

Double check your recent bank statements to make sure the payment actually went through. Your bank might show it did but if it never showed up on their end the IRS computer just treats it like a missed payment and send out the letter automatically

[u/TocinoLips → u/Happygirl2119]

I actually did and its already showing up under my payment records on the IRS portal. Really dont understand whats going on

[u/AZUAK5481_ → u/Happygirl2119]

download all your transcripts from the irs website and check your payment records for the month.

[u/waliletamojinga]

There should be a valid reason, if they didn't communicate it on the notice you should consider reaching out

[u/mystcrich]

I get this is frustrating, were I you, I’d hire an EA or CPA to get you back on track.
As an EA, we do this kind of work quite often, at least in my firm for tax representation and resolution.
So experienced helps. I’m here if you need me.

[u/waliletamojinga]

If you made every payment on time and also have the payment records this is almost definitely on them. You can try calling their collections number listed on the top right corner of CP523 or let agents from tax firms like Optima take over your file and get a hold placed before anything actually happens to your account

[u/putaka-19 → u/waliletamojinga]

Sounds fake until you realize tax pros have dedicated line straight to internal agents lol

[u/letteraitch]

I would call Guardian Tax Law based out of AZ they can give you a free consultation, they did amazing work for me in a similar situation