Question 1

What is a CP523 notice?

Accepted Answer

A CP523 is an IRS Notice of Default on Installment Agreement and Intent to Levy. It tells you that the IRS intends to terminate your installment agreement and seize (levy) your assets because you have defaulted on the agreement.

Question 2

How long do I have to respond to a CP523?

Accepted Answer

You should contact the IRS as soon as possible but no later than 30 days from the date of the notice. This is a strict deadline.

Question 3

Can I reinstate my installment agreement after a CP523?

Accepted Answer

Yes, you can request reinstatement by contacting the IRS at the number on the notice. You may have to pay a fee to reinstate it or pay any new tax liability in full.

Question 4

What happens if I don't respond to a CP523?

Accepted Answer

If you don't respond, the IRS will terminate your installment agreement and begin collection action, which can include filing a federal tax lien or seizing (levying) your wages and/or bank accounts.

Respond to an IRS CP523 Notice (Installment Agreement Default)