CP523: Intent to Terminate Your Installment Agreement
You missed a payment on your IRS payment plan. Your agreement will be canceled in 30 days.
Deadline
30 days to cure default
Do I owe money?
Yes
What does CP523 mean?
CP523 means you have defaulted on your IRS installment agreement — typically by missing a payment, failing to file a new return on time, or taking on new tax debt. If the agreement is terminated, your entire remaining balance becomes immediately due, and the IRS will resume levy action. You have 30 days to cure the default by making the missed payment and bringing your account current.
What should you do next?
- 1Make the missed payment immediately — this is usually enough to cure the default and preserve the agreement
- 2Call 1-800-829-1040 to confirm the payment was received and the agreement is being reinstated
- 3If you also have unfiled returns, file them immediately — unfiled returns are a common default trigger
- 4If you cannot afford the existing payment, call to request a modification before the 30-day window closes
Frequently asked questions
My bank payment bounced — is that why I got CP523?
Yes, a returned payment is a common cause. Make the payment by a different method (IRS Direct Pay, EFTPS, or a cashier's check) and call to confirm the agreement is still active.
Can I reinstate my installment agreement after it's terminated?
You can apply for a new installment agreement, but you lose the original terms. If your original agreement was a 'streamlined' plan (under $50,000), you may need to reapply and potentially provide financial information.
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Explain my noticeLast updated: 2026-05-18