CP523

These are the exact words the IRS will say if they don’t hear from you.

When you receive a CP523 notice, the IRS is giving you 30 days to contact them regarding your most recent failed payment on the agreed installment agreement between you and the IRS. Additionally, the IRS may file a Notice of Federal tax lien.

To answer the question, “What comes after a CP523 notice?”, you will need to contact the IRS directly or hire a tax specialist to get in contact with the IRS on your behalf. 

These are the additional countdown timelines to consider for the Notice CP523:

Important note: The IRS sends out a registered mail which notifies them once the CP523 notice has been delivered in your mail. 

How to respond to a CP523 before the 30th day?

Before you do anything, read the notice carefully and confirm your deadline to ensure you have the correct dates. Your goal as a taxpayer is to respond by making a payment to the IRS before the 30th to ensure the termination of your installment agreement doesn’t occur. You might have to pay a fee to reinstate it or you may even have to pay a new tax liability in full.

Make sure to take the correct action and avoid having your installment agreement terminated.

If you truly cannot afford payment, it is not recommended to ignore the notice but rather be proactive and consider a CNC status which stands from Currently Not Collectible or Offer in Compromise to settle at a lower price than what you currently owe.

Below you see the dates that the IRS gives taxpayers to get a clear idea of your last days to submit an appeal.

• Day 30th – After 30 days of no contact from the date shown on the notice, the IRS will terminate any installed agreement payment plan.
• Day 46th – You have 46 days to appeal a defaulted agreement, if not the IRS will terminate the agreed installment agreement.
• Day 76th – You are given 30 days after the termination to submit an appeal of the termination agreement

After 90 days or possibly earlier of no contact made to the IRS the seizing of your wages, properties, bank accounts, and tax liens will begin.  

Frequently Asked Questions:

Can the IRS reinstate the installment agreement?

The IRS might reinstate your installment agreement by correcting the issue causing the default within 30 days?

What other forms by the IRS essentially mean to inform a taxpayer the intent to terminate the installment agreement and levy the assets? 

In addition to the IRS using the CP523 to inform you of intent to terminate your installment agreement – you will also hear that forms CP523 (SP) and CP623 essential have the same meaning.