Your CP523 Notice: Explained

What it's saying:

The CP523 is a letter from the IRS informing you of their intent to terminate your repayment plan and seize, or levy, your assets. The reason the IRS would send this termination letter is due to a defaulted payment.

You may have received a CP521 recently before this, which highlights your recent missed payment. For whatever reason, it may be, a defaulted payment may have resulted from one of these commonly made mistakes:

  • Failure to make a monthly payment (most common)
  • Failure to provide the IRS information upon their request
  • Failure to pay the required monthly installment amount

Upon receiving the CP523 notice, it does not mean immediate termination of an installment agreement. Your account will go into the IRS’ systems as “default status”, which is removable via a CAP appeal.

How to resolve it:

A CAP appeal allows you to re-examine the IRS’ reasoning as to why the defaulted you and can offer the possibility of reinstatement for your repayment plan.

The IRS allows up to 30 days after the agreement is terminated to submit an appeal, which if approved could save you from paying the entire amount immediately.

If you plan on submitting a CAP appeal, be sure you are referencing the date stated on the notice, and NOT the date you received it in the mail. There are no exceptions for late appeals, which makes it all the more important to submit your claim in a timely manner.

Recommended options:

Learn more on how you can set up an Installment Agreement or apply for an Offer in Compromise.

If you have back taxes call one of our experts at 833-419-RISE(7473). They can guide you through the process and get you back on track.

Learn how easy it is to qualify for tax savings.

Related forms:

CP10

CP11

CP12

CP14

CP23

CP24

CP49