Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP523
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice 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 should you do if you receive this notice?
- 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, the IRS 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.
FAQs & Additional Information
- What is the notice telling me?
- This notice is telling you that the IRS intends to terminate your installment agreement and seize (levy) your wages and/or bank accounts if you take no action. The notice tells you why they 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 the IRS immediately at the toll-free number listed at the top right corner of the notice. They will discuss what you need to do to resolve this issue.
- How much time do I have? You should contact the IRS 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 the IRS 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 the IRS' reason for terminating your installment agreement, contact them at the number printed at the top of the notice. If after talking with them 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 the IRS to make sure they have a record of your action so that they can reinstate your installment agreement.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.