Defaulted IRS Payment Plan – Learn What to Do

Intent to Terminate Installment Agreement
Intent to Terminate Installment Agreement

IRS Notice CP523

You may have recently defaulted on your IRS payment plan (also known as an installment agreement) because you could no longer pay the large monthly payments. This is a common scenario of many of our clients with back tax debt. This is what usually happens…

When you received your IRS collection notice or you were about to get levied, you likely called the IRS yourself and you were nervous (rightfully so); didn’t know your rights; and accepted whatever the IRS employee told you had to pay. Your intentions were good but you didn’t have the proper professional guidance from a tax attorney. You agreed to an IRS payment plan that was too high.

Now, fast forward a few months later, your budget could no longer afford the large monthly nut and you stopped paying.

As a result,  you will soon  receive a Notice of Default from the IRS. The notice will say: “Notice of Intent to Levy! You Defaulted on Your Installment Agreement.” This letter will have CP523 on top of the letter.

What to Do Next

  • When you receive the notice “Notice of Intent to Levy! You Defaulted on Your Installment Agreement,” you have 30 days to file an appeal to renegotiate the installment agreement.


  • It is important that you or your tax attorney file the appeal on a timely basis. By doing so, the Internal Revenue Service cannot take any further collection action against you until such time that the hearing is conducted. In other words, you’ll have some breathing room from IRS collections.


  • Hire an IRS tax attorney to help you. An IRS attorney will help protect your assets, income, and bank accounts from the IRS and will negotiate a more reasonable payment arrangement.

If you have questions about a defaulted installment agreement or the best resolution option for your particular circumstances, contact experienced New York tax attorney Charles Rosselli, founder of the Tax Problem Law Center, for a free phone consultation at (516) 620-5944.

NY Tax Attorney Charles Rosselli is licensed to handle IRS tax problems nationwide.




Charles Rosselli, Esq.

Charles Rosselli, Esq., founder of the Tax Problem Law Center, is a New York tax attorney that focuses his tax law practice on helping individuals and businesses solve their IRS and NYS tax problems once and for all.

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