IRS Letter CP523
Why are you receiving this letter?
You received IRS letter CP523 because you have entered into an installment agreement on a balance owed to the IRS and have not made payments in accordance with your agreement.
- You owe a balance and can pay it in full.
- You can pay online at www.irs.gov/payment.
- Your tax balance is less than $25,000.
- You don’t have unfiled tax returns.
- You are unable to pay back the taxes in full.
- You would like to discuss this with someone not working for the IRS to understand what is going on and the options you have.
- Your tax balance is greater than $25,000.
- You have unfiled tax returns.
- You are unable to pay back the taxes in full.
- You would like to negotiate down the tax balances.
What you should do?
Make a payment immediately or your installment agreement will default. It may become harder to set up a new installment agreement with the IRS if you default.
Contact the IRS or a tax professional if you are unable to afford the installment agreement payments. You may be able to renegotiate your installment agreement terms based on your current financial situation.
What can you expect next?
If you make the payment prior to the deadline listed on the Notice, your installment agreement will stay intact. If you do not make the payment, the installment agreement will be terminated on the date listed on the notice. On our example notice, the installment agreement will be terminated on August 27, 2014. After that date, the IRS will pursue collection action that may include, but is not limited to filing Federal Tax Liens, Tax Levies on your wages, bank accounts, state & federal tax refunds, etc.