CP523 Notice — Intent to Terminate Your Installment Agreement

Direct answer

CP523 warns that the IRS intends to terminate your installment agreement — usually because you missed a payment, defaulted on terms, or a new balance appeared that broke the plan.

An installment agreement pauses aggressive collection while you pay over time — but it is fragile. CP523 means the plan is at risk; act before termination posts and collection restarts.

Reviewed August 2026 · Joseph Lancaster, Founder · About the author

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What CP523 means

The IRS believes you violated installment agreement terms. Common triggers: missed monthly payment, new tax year balance, failure to file future returns, or offset that reduced payments below required amounts.

Verify on your account transcript

  • Look for TC 971 with action codes related to installment agreement established or terminated.
  • Confirm TC 670 payment lines posted for the months you believe you paid.
  • Check whether a new assessment (TC 290) or balance from another year broke the agreement.

What to do before termination

  • Pay the missed amount immediately if you can — often the fastest fix.
  • Call the IRS number on the notice to discuss reinstatement or a new agreement.
  • If you disagree, document payments and response timing.
  • After termination, collection notices (CP504, LT11) can return quickly — do not wait.

If the agreement is terminated

Collection generally resumes on the full balance. You may apply for a new installment agreement, but terms may be stricter. Pull a fresh transcript to see what posted and whether levy indicators are active.

Related IRS notices

Verify on your IRS transcripts

Notices describe what the IRS intends to do — your account transcript shows what actually posted. Start here:

Common questions

Can I save my payment plan after CP523?

Often yes if you cure the default quickly — pay the missed payment or resolve the new balance. Contact the IRS before the termination date on the notice.

Will CP523 cause a levy?

Not by itself — but terminated agreements remove collection protection. Levy notices can follow if the balance stays unresolved.

How do I prove I made my IA payments?

Bank records plus TC 670 lines on your account transcript. Our transcript codes guide explains payment postings.

Need help responding before collection escalates?

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