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CP523 notice: what it means and what to do
Got an IRS CP523 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP523 notice freeWhat the IRS says this notice is about
If you received a CP523, CP523 (SP) or CP623 notice, the IRS is informing you of the intent to terminate your installment agreement and seize (levy) your assets. You have defaulted on your agreement.
What you need to do
- Make your payment before your termination date to prevent your installment agreement from being terminated. Go to the payments page to make your payment or find out more about your payment options.
- Contact the IRS right away to see if you can reinstate your agreement. You may have to pay a fee to reinstate it or you may have to pay any new tax liability in full.
- Read your notice carefully , it explains what to do now that you have defaulted on your installment agreement.
- If you don't respond, we will terminate your installment agreement and begin taking collection action, which can include filing a federal tax lien or seizing (levying) your wages and/or bank accounts
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
The IRS says it may take money or property
Pay, set up a payment plan, or call before the date on the notice to stop the next step. A final notice with your right to a hearing comes before most levies.
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
Common questions
What is the notice telling me?
This notice is telling you that we intend to terminate your installment agreement and seize (levy) your wages and/or bank accounts if you take no action. The notice tells you why we are taking this action.
This notice also explains the denial or revocation of a United States passport. The Fixing America’s Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt. Additional information on passport certification is available at IRS.gov/passports .
What do I have to do?
Contact us immediately at the telephone number listed on your notice. We will discuss what you need to do to resolve this issue.
How much time do I have?
You should contact us as soon as possible but no later than 30 days from the date of the notice.
Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.
What if I don't agree with your action or have already taken corrective action?
If you don't agree with our reason for terminating your installment agreement, contact us at the telephone number listed on your notice. If after talking with us you still do not agree, you have the right to file an appeal and can request a hearing with the IRS Independent Office of Appeals.
If you have already taken corrective action, you should still call us to make sure we have a record of your action so that we can reinstate your installment agreement.
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