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Tax · United States

IRS Notice CP523 — intent to terminate your installment agreement

A CP523 means a payment plan with the IRS has gone into default — for example a missed monthly payment — and the IRS intends to terminate the agreement and levy assets. Acting within 30 days can usually save the agreement.

How serious: enforcement closeAlso called: CP523, installment agreement default notice, payment plan termination notice

The CP523 is sent when an installment agreement (payment plan) with the IRS has gone into default — for example because a monthly payment was missed or a required return was not filed.

The notice informs you of the IRS's intent to terminate the installment agreement and to seize (levy) assets. It names a termination date.

The way back is time-bound. Acting within 30 days can usually save the agreement, and making the payment before the termination date prevents the termination.

Who sends it

The Internal Revenue Service (IRS) — the United States federal tax authority, part of the Department of the Treasury.

The code 'CP523' is printed at the top, with the headline 'Intent to terminate your installment agreement'. The notice refers to your monthly payment plan, a termination date, and levy of assets. A toll-free number appears in the top right corner.

The deadline

Contact the IRS 'as soon as possible but no later than 30 days from the date of the notice'; 'Make your payment before your termination date to prevent your installment agreement from being terminated' (IRS CP523 page)

The notice asks that the IRS be contacted as soon as possible, and no later than 30 days from the date printed on it. Making the payment before the termination date prevents the installment agreement from being terminated.

If you do nothing

Without a response, the IRS terminates the installment agreement and begins taking collection action, which can include filing a federal tax lien or seizing (levying) wages and/or bank accounts. Seriously delinquent tax debt can also lead to passport denial under the FAST Act.

Compute your date

The rule above is what the law sets. Put in the dates on your own letter and it becomes a date.

How it escalates

  1. 01The installment agreement is terminated.
  2. 02Collection action begins: a federal tax lien can be filed, and wages and/or bank accounts can be levied.
  3. 03Passport denial is possible for seriously delinquent tax debt under the FAST Act.

Your options, procedurally

  • The missed payment can be made immediately via the IRS payments page.
  • The IRS can be contacted right away at the number on the notice about reinstating the agreement.
  • In case of disagreement, an appeal can be filed with the IRS Independent Office of Appeals, and a hearing can be requested.
  • Someone can be authorized to contact the IRS on your behalf; Low Income Taxpayer Clinics offer help.

How to respond

Response types

  • Confirm paymentPayment of the missed instalment before the termination date printed on the notice
  • Ask for instalmentsReinstatement of the installment agreement, or a revised agreement (call the number on the notice; Online Payment Agreement for a revision) · IRC §6159Form: Form 433-F or 433-A where updated financial information is requested; Form 9465 where a new agreement is applied for by mail
  • Ask for more timeRequest to revise the monthly payment amount or to have collection delayed for hardship (Currently Not Collectible) · IRC §6159 (revision of the agreement); IRC §6343 (economic hardship)Form: Form 433-F or Form 433-A, Collection Information Statement
  • File the objectionCollection Appeals Program (CAP) appeal against the termination — Form 9423, Collection Appeal Request, heard by the IRS Independent Office of Appeals · IRC §6159(e) (independent administrative review of terminations of installment agreements); IRS Appeals administrative procedure (Publication 1660)Form: Form 9423 (Collection Appeal Request)
  • Ask for clarificationCall to the number printed at the top of the notice to establish why the agreement is being terminated

Where and how

  • U.S. Mail (First-Class Mail)
  • Certified Mail / Registered Mail (USPS), return receipt requested
  • Designated Private Delivery Service (DHL Express / FedEx / UPS — qualifying service levels only)
  • IRS Individual Online Account (irs.gov/account) / Business Tax Account
  • Telephone — the number printed on the notice (general line 800-829-1040)

What makes it count

Contact the IRS no later than 30 days from the date of the notice, and make any curing payment before the termination date printed on it. Payments through the Online Account or Direct Pay count on their transaction timestamp; mailed payments and a mailed Form 9423 are treated as sent on the postmark date under IRC §7502 when properly addressed with postage prepaid. Because termination is followed by lien filing and levy, use certified mail or a designated private delivery service for anything whose date may have to be proved.

Common questions

Can the payment plan still be saved after a CP523?

Usually, yes. The notice asks for contact no later than 30 days from its date, and making the payment before the termination date prevents the agreement from being terminated. Reinstatement can be discussed at the number on the notice.

Why did a CP523 arrive at all?

Because the installment agreement went into default — for example, a monthly payment was missed or a required return was not filed.

What happens if the agreement is terminated?

Collection action begins. That can include filing a federal tax lien or levying wages and/or bank accounts, and seriously delinquent tax debt can lead to passport denial under the FAST Act.

Sources

Facts verified against the sources below on 28 August 2026.