Ask Maxi · IRS letters
I got a CP523 from the IRS. What does it mean?
A CP523 means you have defaulted on your IRS payment plan, and the IRS intends to end the agreement and start collection unless you act before the termination date on the notice.
Common reasons for a default: a missed or bounced payment, a new balance from a later year, or a return that was not filed on time while the plan was active.
What to do:
- Contact the IRS as soon as you can, and no later than 30 days from the date on the notice.
- Make the missed payment before the termination date if you can.
- Ask to have the agreement reinstated. There may be a fee, and any new balance may need to be paid or added.
- If you already fixed the problem, call anyway so it is recorded on your account.
- If you disagree with the default, you can ask for an appeal.
If nothing happens, the plan ends and the IRS can move to liens and levies on wages or bank accounts. Seriously delinquent debt can also affect your passport.
Keeping a plan alive is much easier than starting over. If this year's taxes are what knocked it off track, the fix usually includes adjusting your estimated payments or withholding so it does not happen again.
Send us a photo of the first page of the notice. We will tell you what it means for you and what to do next.
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