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Why Did You Receive a CP523 Notice?
The CP523 notice is issued when the IRS believes you’ve defaulted on the terms of your installment agreement. Common reasons include:
- A missed payment
- Failure to file a new required tax return
- Your tax debt increased, and you didn’t update the agreement accordingly
- Failure to stay compliant with other IRS filing requirements
What Happens If You Ignore It?
Ignoring a CP523 notice can trigger immediate and serious consequences. The IRS may:
Begin levying your wages or bank account
File a Notice of Federal Tax Lien
Terminate your installment agreement
Add penalties and interest, increasing your total balance due
What Should You Do Immediately?
Time is critical. Here are your next steps:
Do not ignore the notice — delays reduce your options
Review the reason for the default
Contact the IRS or a tax relief specialist immediately
Request reinstatement or negotiate a new installment plan
How Priority Tax Relief Can Help
Our experienced tax professionals understand the urgency of a CP523 situation. We provide:
Direct communication with the IRS on your behalf
Reinstatement or renegotiation of your payment plan
Protection from wage garnishments, levies, or liens
Full case review to ensure ongoing compliance
“Thanks to Priority Tax Relief, I avoided losing my assets after receiving a CP523 Notice. Their team guided me every step of the way.” — Mark T.
Frequently Asked Questions: Safeguard Your Installment Agreement Before It’s Too Late
What is a CP523 Notice from the IRS?
A CP523 Notice is sent by the IRS when you’ve defaulted on your installment agreement. This usually means you missed a payment, failed to file a required return, or incurred additional tax debt without updating your plan.
What happens if I ignore the CP523 Notice?
Ignoring the notice can lead to serious consequences, including the termination of your installment agreement and enforced collection actions like wage garnishment or bank levies.
Why did I receive a CP523 even though I made a payment?
You may have still received the notice if your payment was late, didn’t go through properly, or if you failed to file another required tax return. It’s best to double-check your records and contact the IRS or a tax professional.
Can I reinstate my installment agreement after receiving a CP523?
Yes, in many cases, the IRS allows you to reinstate your agreement — especially if this is your first default. You’ll need to act quickly and may be required to pay a reinstatement fee.
Will the IRS take my assets right away after sending this notice?
Not immediately, but the CP523 is a final warning. If no action is taken, the IRS can begin levying your wages, bank accounts, or other assets soon after the agreement is terminated.
Can I negotiate a new payment plan instead of reinstating the old one?
Absolutely. If your financial situation has changed, Priority Tax Relief can help you propose a new installment agreement or explore other tax relief options like an Offer in Compromise.
