IRS Notice CP523: What It Means
The IRS page “Understanding your CP523 notice”, last reviewed October 2, 2026, says: “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.”
When we checked on November 2, 2026, the IRS page showed “Page Last Reviewed or Updated: 02-Oct-2026”. The IRS wording in quotation marks abouta CP523 notice comes from that IRS page.
Maintained by Archie Chang · Reviewed November 2, 2026 · Methodology & sources
What the IRS page says the notice is 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.”
Response timing, as the IRS words it
IRS line before it: “How much time do I have?”
“You should contact us as soon as possible but no later than 30 days from the date of the notice.”
Steps the IRS page lists
“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, we 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”
Frequently asked questions
What does the IRS say a CP523 notice is telling the reader?
The IRS page for CP523, last reviewed October 2, 2026, answers its question “What is the notice telling me?” this way: “This notice is telling you that we intend to terminate your installment agreement and seize (levy) your wages and/or bank accounts if you take no action. The notice tells you why we 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 does the IRS say to do after a CP523 notice?
The IRS page for CP523, last reviewed October 2, 2026, answers its question “What do I have to do?” this way: “Contact us immediately at the telephone number listed on your notice. We will discuss what you need to do to resolve this issue.”
Who does the IRS say to contact about a CP523 notice?
The IRS page for CP523, last reviewed October 2, 2026, answers its question “Who should I contact?” this way: “If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.”
What does the IRS say if the reader does not agree with a CP523 or has already acted?
The IRS page for CP523, last reviewed October 2, 2026, answers its question “What if I don't agree with your action or have already taken corrective action?” this way: “If you don't agree with our reason for terminating your installment agreement, contact us at the telephone number listed on your notice. If after talking with us 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 us to make sure we have a record of your action so that we can reinstate your installment agreement.”
Related FedRateCalc pages
- IRS payment plan calculator (estimates of installment payments)
- IRS tax lien (what a federal tax lien is)
Other IRS notice pages
Sources (checked November 2, 2026): IRS: Understanding your CP523 notice (page last reviewed October 2, 2026)