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 your account
Collection is stayed and the CSED is tolled. Coordinate with bankruptcy counsel before CNC, IA, or levy-release work.
Related codes
Where Brevitax uses it
Brevitax reads these postings from account transcripts and surfaces them as plain-language timeline events and attention items — not as a raw code list. Upload transcripts or have Brevitax request them, then see TC-520 in context on your dashboard.
Common questions
What does TC-520 mean on an IRS transcript?
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.
Why does TC-520 matter for tax resolution?
Collection is stayed and the CSED is tolled. Coordinate with bankruptcy counsel before CNC, IA, or levy-release work.
Where do I find TC-520 on my account transcript?
Look for transaction code 520 in the posting sequence for the tax year. 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.