The LT23 warns you that your installment agreement may default. It's a softer version of the CP523. The IRS has identified a compliance issue and is giving you a chance to fix it before the agreement terminates.
Common Issues
The LT23 is triggered by the same issues as the CP523: missed or late payments, unfiled tax returns, new balances due, and failure to provide requested financial information. The LT23 is an intermediate step, a warning before the formal default notice.
What to Do
Identify the specific issue from the notice and cure it immediately. Make the missed payment. File the delinquent return. Pay the new balance or request it be added to the agreement. Whatever triggered the warning, fix it before the agreement terminates.
Call the IRS at the number on the notice to confirm the issue has been cured and the agreement is back in good standing. Don't assume fixing the problem automatically saves the agreement. Get verbal confirmation and note the date, time, and employee ID number.
Prevention
Set up automatic debit for installment payments. File every return on time. Make estimated tax payments if self-employed. Review your agreement terms periodically to make sure you're in compliance. The IRS would rather you stay in the agreement than default.
If you've received an LT23, call us at (813) 229-7100.