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IRS notices / CP523

IRS notice CP523: payment plan default notice

A CP523 says you've defaulted on your installment agreement and the IRS intends to end the agreement and levy your assets.

For individuals · Based on the IRS's own explanation of this notice

Deadline: Reach out to the IRS as soon as you can, within 30 days of the notice date at the latest.

What this notice means

You've defaulted on your payment plan, so the IRS plans to terminate the agreement. The notice tells you why.

If you take no action, the IRS can end the agreement and start collecting, which can include a federal tax lien or a levy on your wages or bank accounts. The notice also explains how seriously delinquent tax debt can affect your passport.

Why you got it

What to do now

  1. Read your notice carefully. It explains why the IRS is acting and what to do now.
  2. Make your payment before the termination date on your notice to keep the agreement from ending.
  3. Call the IRS right away at the number on your notice to see if your agreement can be reinstated. Reinstating it may cost a fee, or you may need to pay any new tax you owe in full.
  4. If you already fixed the problem, still call so the IRS has a record of it and can reinstate your agreement.
  5. If you disagree with the termination and a call doesn't settle it, you have the right to appeal and to ask for a hearing before the IRS Independent Office of Appeals. The IRS prefers Form 9423 for this request, sent within the time frame on your notice.

If you don't respond

If you don't respond, the IRS will end your installment agreement and move to collect, for example by filing a federal tax lien or levying your wages or bank account.

See what a payment plan costs. Enter your balance and a monthly payment to get your payoff date and the total cost.

Questions people ask

Can I get my payment plan back?

Possibly. Call the number on your notice right away. Reinstating it may cost a fee, or you may need to pay any new tax you owe in full.

What if I don't agree with ending my plan?

Call the number on your notice first. If you still disagree after that, you have the right to appeal and to ask for a hearing before the IRS Independent Office of Appeals.

Can this affect my passport?

It can. Under the FAST Act, the State Department generally can't issue or renew a passport for someone with seriously delinquent tax debt.

Related notices

This page explains the notice in plain English. Always follow the instructions and deadlines printed on your own notice. IRS: Understanding your CP523 notice · IRS: Understanding your CP521 notice · IRS Publication 594, The IRS Collection Process (PDF) · IRS Publication 1660, Collection Appeal Rights (PDF)

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