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Collection: levy and lien warnings

IRS CP523

Your payment plan is in default and about to end

Respond by

Make your payment before the termination date shown on the notice; the IRS page's FAQ says to contact the IRS no later than 30 days from the date of the notice

Who sent it

IRS
Facts on this page come from that IRS page, last updated by the IRS Oct 2, 2026; read by TaxScout Oct 19, 2026.

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What this letter asks of you, what to gather, and what to ask a professional if you need one. No phone number asked.

What this letter means

You have defaulted on your installment agreement and the IRS intends to terminate it; the IRS may also levy your assets.

Later letters in the balance-due series. These carry rights with short windows.

What to do

  1. 1Read your notice carefully; it explains your next steps after default.
  2. 2Make your payment before the termination date on the notice to prevent termination.
  3. 3Contact the IRS right away at the number on your notice about reinstatement; a reinstatement fee or payment of any new liability in full may be required.
  4. 4If you already corrected the problem, call anyway so the IRS can record it and reinstate the agreement.
  5. 5If you disagree, contact the IRS, and if you still disagree you can request a hearing with the IRS Independent Office of Appeals.

The IRS page describes two paths, one if you agree with the change and one if you do not. The response form that came with your letter is where you mark which one applies.

If you do nothing

The IRS will terminate your installment agreement and begin collection action, which can include filing a federal tax lien or levying your wages and/or bank accounts; seriously delinquent debt can affect your passport.

Is this letter real?

IRS letters arrive by mail and carry a notice number, your name and the tax year. The IRS does not open contact by text, email or social media, and does not ask for payment by gift card.

Check the notice number against the official IRS site before you respond, and respond only to the address or number printed on the official page.

Common questions

What is IRS CP523?

You have defaulted on your installment agreement and the IRS intends to terminate it; the IRS may also levy your assets. The IRS page for it is titled 'Understanding your CP523 notice'.

How long do I have to respond to CP523?

Make your payment before the termination date shown on the notice; the IRS page's FAQ says to contact the IRS no later than 30 days from the date of the notice. The date printed on your letter controls; the IRS page for this notice is the source.

What happens if I ignore CP523?

The IRS will terminate your installment agreement and begin collection action, which can include filing a federal tax lien or levying your wages and/or bank accounts; seriously delinquent debt can affect your passport.

Is CP523 a scam?

IRS notices arrive by mail with your name, a notice number and a tax year. Check the number on the official site before you respond, and never pay by gift card or wire on the strength of a phone call.

Do I need a CPA for CP523?

Not always. Upload the letter and the free report explains what it asks for and what to gather; if a professional makes sense, the report says why and what to ask. TaxScout never shares your request with any firm unless you ask for that on the report.

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Not tax advice. TaxScout is not the IRS. Deadlines and steps above are quoted from the IRS page linked at the top and may change; the letter in your hand controls.