CP 523 IRS Notice: Notice of Intent to Levy, You Defaulted on Your Installment Agreement

A CP 523 Notice is forwarded to the taxpayer to show that they have defaulted on previously arranged installment agreement. This means that the person did not abide by the terms of their installment agreement and they are now in default status. A CP 523 form shows the reason for default, intent to levy assets or income and the rights the taxpayer has to prevent collection action from being taken.

IRS Notices

The standard stub issued contains alpha characters to represent the various tax codes. They are shown in the format of "aa", "bb", "cc", "dd", "ee", ff, "gg", and so on. The first code is represented as an "aa", and the preceding codes are listed in order. No more than eight codes will be listed on one stub.

The IRS also encloses the following forms in this notice:

  • Notice 1219B: Notice of Potential Third Party Contact-the IRS intends to speak to others about your tax debt
  • Notice 1219B (SP): Avis De Possible Communication con Teresa (s) Persona (s)-For Spanish speaking taxpayers
  • Notice 609: Privacy Act Notice
  • Notice 746: Information About Your Notice, Penalty and Interest
  • Publication 594: What You Should Know About The IRS Collection Process

The IRS will only send this notice in three instances, you missed a payment, you have a new balance or you failed to file a tax return. You have 30 days from the date of the notice to respond. This is an official cancellation of your installment agreement. You need to contact your tax attorney to represent you in this matter and find a workable solution to this situation.