IRS Notice CP523 is sent when a taxpayer has defaulted on their Installment Agreement with the IRS. This notice indicates that the taxpayer failed to make the required monthly payments or otherwise did not comply with the terms of the agreement. As a result, the IRS may terminate the agreement and resume collection actions, including levies and wage garnishments.
The notice outlines the reason for the default, the remaining balance on the tax debt, and the steps the taxpayer can take to avoid further collection efforts. If the taxpayer can resolve the default, such as by making a missed payment, they may be able to reinstate the agreement.
If the Installment Agreement is terminated, taxpayers should act quickly to contact the IRS and discuss options for setting up a new agreement or exploring other tax debt relief options, such as an Offer in Compromise.