A CP523 means the IRS intends to terminate your installment agreement — you have 30 days to cure the default before the agreement ends and enforcement restarts. Missed payment, a new unfiled return, or a new balance are the usual triggers. The agreement is not dead yet, but it is on the table.
By Sam Brotman, JD, LLM, MBA · Last updated August 2026
Your deadline
30 days from the notice date to fix the default — catch up the missed payments, file the missing return, or address the new balance. The agreement terminates after that, and the full remaining liability becomes immediately collectible.
What happens if you ignore it
The installment agreement terminates, the protection it provided ends, and the IRS may resume levies — often faster than a new case, because your financial information is already on file. Reinstating after termination is possible but may require new financials, a reinstatement fee, and manager approval you did not need before.
Your options
Cure the default within the window; ask for reinstatement or restructuring if the payment amount no longer fits your situation; or convert to a different resolution — a partial-pay installment agreement or an Offer in Compromise — if your circumstances have genuinely changed. A CDP-equivalent appeal (CAP) is available to challenge the termination itself.
What we do
We diagnose why the agreement defaulted, cure what can be cured inside the window, and restructure the agreement when the original terms stopped fitting your finances. If your situation has deteriorated, we run the numbers on whether a smaller footprint — PPIA or currently-not-collectible — is the better path.
Holding this notice now? Book a free 15-minute call or call (619) 378-3138. We will tell you exactly where you are in the collection process and what your options are before you spend anything. Our IRS collections attorney team handles these matters statewide.