IRS Notice CP523: Intent to Terminate Your Payment Plan — What to Do
A CP523 means your IRS payment plan is in trouble. If you don't act by the date on the notice, the IRS will end the agreement and can move toward levy.
Have a CPA review my CP523A CP523 means the IRS intends to terminate your installment agreement. Common reasons are missed payments, a new tax balance, or an unfiled return.
If the agreement ends, the IRS can resume collection, including levies. In most cases you can save it by fixing the problem before the date on the notice, or appeal the termination.
Where this notice falls in the IRS process
- Installment agreement set up
- Missed payment, new balance, or unfiled return
- CP523 — intent to terminate — you are here
- Agreement terminated
- Levy action can resume
What the IRS can do now
- Terminate your installment agreement on the date shown in the notice.
- Resume collection after termination, including levies on wages and bank accounts, once the protections listed below end.
What the IRS generally can't do yet
- Generally levy while your agreement is in effect.
- Generally levy for 30 days after termination, or while a timely appeal of the termination is pending.
Your options
Catch up
Make the missed payment, or pay the new balance, before the date on the notice.
Reinstate the agreement
Call the IRS to reinstate. A reinstatement fee may apply, and new balances can sometimes be added to the plan.
File missing returns
If an unfiled return triggered the notice, file it right away.
Appeal the termination
You can request a review through the Collection Appeals Program (Form 9423).
Rework the plan
If the payment no longer fits your budget, you may need a new agreement, hardship status, or another resolution.
What not to do
- Ignore it. Once the plan ends, protections from levy go away.
- Let new balances pile up. Make sure your current-year withholding or estimated payments cover this year's tax.
- Start a brand-new plan online without checking whether reinstatement is the better option.
Got a CP523? Let's save your payment plan.
Tiffany V., CPA can find out exactly why the plan is in default, fix it before the termination date, and restructure it if the payment no longer works.
Book my CPA reviewFrequently asked questions
Why did I get a CP523 if I'm paying?
A payment may have been missed or returned, you may owe a new balance for another year, or a required return may be missing. Check your IRS account or have your transcripts pulled.
Can I reinstate my IRS payment plan?
Often, yes, by fixing the default and contacting the IRS before the termination date. A reinstatement fee may apply.
Can the IRS levy right after a CP523?
Generally not while the agreement is still in effect, for 30 days after it's terminated, or while a timely appeal is pending. After that, levy action can begin.
Written by Tiffany V., CPA, founder of Cents Savvy LLC. Last reviewed October 2026. This page is general information, not tax or legal advice for your situation. Cents Savvy LLC is a private CPA firm and is not affiliated with the IRS. Always follow the dates printed on your own notice.