A CP523 notice means the IRS believes you have defaulted on an existing installment agreement and intends to terminate it and begin levy action.
What Triggered This Notice
You defaulted on your installment agreement — commonly by missing a payment, missing a new tax filing, or accruing a new balance while on the plan.
Your Deadline
Per IRS.gov, you should contact the IRS “as soon as possible but no later than 30 days from the date of the notice.”
What Happens If You Miss It
If you do not act within 30 days, the IRS will terminate your installment agreement and begin collection action — which can include filing a federal tax lien or levying your wages and bank accounts.
What To Do
Contact the IRS immediately using the number on the notice. You may need to make a payment before the termination date, and reinstating a defaulted agreement can require a fee or full payment of any new liability. If your business cannot catch up on the plan, financing to pay the balance in full ends the default risk entirely rather than negotiating a second agreement.
Source: IRS.gov — Understanding Your CP523 Notice
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