IRS transcript code

TC-520 — what it means for the case

Transaction Code 520. Indicates a bankruptcy or litigation hold. The IRS is prohibited from collecting while the bankruptcy stay is in effect. TC-520 tolls the CSED for the duration of the bankruptcy plus 6 months. For tax professionals — not a consumer decoder.

Definition

Transaction Code 520. Indicates a bankruptcy or litigation hold. The IRS is prohibited from collecting while the bankruptcy stay is in effect. TC-520 tolls the CSED for the duration of the bankruptcy plus 6 months.

What it means for a resolution case

Collection is stayed and the CSED is tolled. Coordinate with bankruptcy counsel before CNC, IA, or levy-release work.

Related codes

TC-971 · TC-530 ·

Where RESO uses it

Core Discovery reads these postings from Account transcripts and surfaces them as findings — not as a raw code list. The ledger stays Tier IRS. Client memory does not overwrite it.

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