IRS CP523: Intent to Terminate Your Payment Agreement

CP523 reports a default and the IRS intent to terminate your installment agreement and levy assets if the issue is not resolved.

Contact the IRS as soon as possible, no later than 30 days from the notice date. Follow the termination date and instructions on your actual notice.

Do This, in Order

1. Read the stated default reason and termination date.
2. Make the required payment before termination and contact the IRS about reinstatement.
3. A reinstatement fee or payment of a new tax liability may be required; confirm your own requirements.
4. If you still disagree after contacting the IRS, follow the appeal instructions for the Independent Office of Appeals.

Straight Answers

Has My Agreement Already Been Permanently Cancelled?

CP523 gives notice of intent to terminate. Do not assume termination is complete or permanent; contact the IRS promptly.

I Already Corrected the Problem. Should I Still Call?

Yes. Confirm the IRS recorded the correction and discuss reinstatement.

Does Starting the Consultation Reinstate My Agreement?

No. The consultation collects your concerns. Reinstatement and an IRS response are separate actions.

Where This Sits in the Machine

Start with your actual notice and records. A response to a return correction, a refund application, and a collection notice are different tasks. Understanding the stage matters more than the single letter — read IRS Collections: The Enforcement Arm for the map, and the letter-by-letter anatomy in the firm's notice decoder for CP523.

What Representation Changes

An Enrolled Agent can review the notice and your records under a separate engagement, identify what needs an answer, and represent you within the scope of your authorization. Start with the free tax consultation so the firm understands the concern behind the documents.

Read The IRS Guidance For CP523 · Source checked October 11, 2026.