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IRS Notice CP523 – Intent to Levy & Intent to Terminate Your Installment Agreement

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Your current installment agreement will be terminated if the past-due balance is not paid or other payment arrangements made, within 30 days of the date on the notice.

Type of notice: Unpaid balance

Likely next step: Address an unpaid tax bill

Also see: IRS penalties, Unfiled returns

Why you received IRS Notice CP523

  1. You are in an installment agreement with the IRS to pay a tax balance.
  2. You defaulted on your installment agreement for one or more of these reasons:
    • One or more payments were missed.
    • You incurred a new unpaid balance.
    • You didn’t file a tax return by the due date.
  3. The IRS intends to terminate your installment agreement and to levy your assets if they fail to hear from you within 30 days.

Notice deadline: 30 days

If you miss the deadline: If you don’t contact the IRS by the deadline on the notice, the IRS will terminate your installment agreement and proceed with enforced collection action, such as filing a lien or issuing a levy on your wages and/or bank accounts. Penalties and interest will accrue.

Want more help?

Your tax professional can deal with the IRS for you. Learn more about H&R Block’s Tax Audit & Notice Services. Or make an appointment for a free consultation with a local tax professional by calling 855-536-6504 or finding a local tax pro.

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