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IRS NOTICES: TAX DEBT

What is a CP523 notice?

Mark Steber Chief Tax Information Officer Published On June 26, 2020

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IRS notices are letters sent to inform taxpayers of important tax information. Each one is different, but we can explain what the CP523 is about.

Understanding your CP523 notice

You have not paid or were late on your payment plan/installment agreement and the IRS intends to terminate your agreement and seize your assets if you do not pay immediately.

Type of Notice

Unpaid taxes

Why you received the CP523 notice

You received a CP523 notice because you defaulted on your payment plan/installment agreement. The IRS has terminated the payment plan/installment agreement and is notifying you that they intend to seize your assets to pay your tax debt.

Likely next steps

As always, carefully read the notice.

If you can, you will need to make a payment on your payment plan/installment agreement before the termination date on your CP523 notice. Then, you need to contact the IRS to see if it is possible to reinstate your agreement. The IRS might require you to pay a fee or cover any additional tax liabilities before reinstatement of the agreement.

You can also contact a tax professional to learn more about your options.

CP523 Notice deadline

You must make your payment and call the IRS to reinstate your payment plan before the termination date in the notice. You have 30 days from the date of the notice to contact the IRS either by phone or mail.

If you miss the deadline

If you do not make a payment or contact the IRS within 30 days, the IRS will end your payment plan/installment agreement and begin proceedings to seize your assets to pay your tax debt.

 

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

More about Mark Steber Our Editorial Policy

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