IRS CP523 Notice
Intent to Terminate Your Installment Agreement and Levy
You have defaulted. The IRS states a deadline here — no later than 30 days from the date of the notice.
What is CP523? CP523 tells you the IRS intends to terminate your installment agreement and to seize — levy — your assets, because you have defaulted on the agreement.
What This Notice Means
CP523 tells you the IRS intends to terminate your installment agreement and to seize — levy — your assets, because you have defaulted on the agreement. The IRS states it is issued as CP523, CP523 (SP) or CP623.
Unlike most of the collection notices on this site, this one carries a published number, and the IRS states it plainly: "You should contact us as soon as possible but no later than 30 days from the date of the notice."
That is thirty days from the notice date, and the IRS states what fills the gap if nothing happens: it terminates the agreement and begins collection action, which it says can include filing a federal tax lien or levying wages and bank accounts.
Why You Received This Notice
- 1The IRS states you have defaulted on your installment agreement.
- 2It states the notice tells you why it is taking this action.
Important Deadline
The IRS states a number on this notice, which most collection notices do not: contact it as soon as possible but no later than 30 days from the date of the notice.
It also names a separate date, the termination date, and states that making your payment before that date prevents the agreement from being terminated.
Both dates are on the notice. Work from the printed ones.
What You Should Do
- Make your payment before the termination date to prevent the agreement being terminated.
- Contact the IRS right away to see whether the agreement can be reinstated. The IRS states you may have to pay a fee to reinstate it, or may have to pay any new tax liability in full.
- Contact the IRS at the toll-free number at the top right of the notice, no later than 30 days from the date of the notice.
- If you do not agree with the reason for termination, the IRS states you can contact it and, if you still disagree afterwards, you have the right to file an appeal and request a hearing.
Resolution Options That May Help
What NOT to Do
- Do NOT let the 30 days run. This is one of the few collection notices where the IRS publishes the number, and it publishes it because it matters.
- Do NOT assume default means only that the plan stops. The IRS states it will begin collection action, which it says can include filing a federal tax lien or seizing wages and bank accounts.
- Do NOT overlook the passport paragraph. The IRS states this notice also explains denial or revocation of a United States passport under the FAST Act.
Frequently Asked Questions
How much time do I have?
Can I get the agreement back?
What happens if I do nothing?
Can I appeal?
Need Help With This Notice?
Use our free tools to understand your options and connect with professionals who can help.
Related Notices
Recommended Next Steps
- Find the date of the notice and the termination date. They are different dates and both matter.
- If you can make the missed payment before the termination date, that is the route the IRS names first.
- If you cannot, calling within 30 days is what keeps reinstatement on the table.
Sources and last reviewed
- Understanding your CP523 notice — Internal Revenue Service, retrieved 2026-08-21
- Publication 1660, Collection Appeal Rights — Internal Revenue Service, retrieved 2026-08-21
- Revocation or denial of passport in cases of certain unpaid taxes — Internal Revenue Service, retrieved 2026-08-21
Sourced to primary IRS materials and editorially reviewed on 2026-08-21. Not reviewed by a tax professional. Not tax advice. This page explains a notice in general terms and is not tax or legal advice about your situation. Always use the dates and instructions printed on the notice you actually received. Report a correction.