On the paper
Find the reason the notice gives for the default and the amount it says will restore the agreement.
The default reason is the only part of CP523 that determines what fixes it. A missed payment is cured by paying. A new balance for a later year is cured by resolving that year, because most agreements require the taxpayer to stay current on new liabilities. A missing return is cured by filing. Paying the arrears on a notice that defaulted for a new year does not restore the agreement.
Find the date printed on your notice or letter. The paper notice and the current official IRS instructions control, even where this page differs.
Where this notice comes from
An installment agreement carries conditions beyond the monthly payment. The common ones are filing every return when due and paying every new balance when due.
Termination has a consequence beyond the balance in the agreement. Once the agreement ends, the account returns to the collection stream, and the notices that follow can include a final notice of intent to levy with hearing rights.
The IRS may charge a fee to reinstate or restructure an agreement.
General next steps
- Read the default reason and match it to what happened in the account.
- Contact the IRS at the number on the notice within the period the notice states, whether or not you can cure the default that day.
- If the agreement cannot be reinstated, ask what the IRS requires for a new agreement or another collection alternative.
Timing
The IRS page for CP523, checked September 10, 2026, states that you should contact the IRS as soon as possible but no later than 30 days from the date of the notice. The date printed on the notice controls; do not calculate a deadline from this page.
What CP523 does not mean
CP523 does not mean the agreement has already ended. It states an intent to terminate, and the notice period exists so the default can be addressed first. It also does not mean a levy has issued. It does mean the protection an agreement gives against levy is about to lapse.
What this page cannot tell you
This page cannot tell you whether the IRS will reinstate your agreement or what terms it would set for a new one.
How do I respond to an IRS collection notice?
Read the paper notice first. Identify the letter code, the assessed balance, and any date printed on it. Read How do I respond to an IRS collection notice?.
IRS collections
This letter involves an unpaid IRS balance or a collection action. Read IRS collections.
IRS installment agreements and Form 9465
The installment agreement page covers the agreement types, Form 9465, the user fees, and how a termination is appealed. Read IRS installment agreements and Form 9465.
Official sources
If anything on this page differs from your notice or from current IRS instructions, follow the notice and the IRS.
Common questions
Can I keep the agreement if I pay the missed amount?
That depends on why the notice says the agreement defaulted. Paying the arrears addresses a missed payment. It does not address a default caused by a new unpaid year or by an unfiled return.
Does CP523 give appeal rights?
The IRS describes the Collection Appeals Program as available for a proposed termination of an installment agreement. That is a different process from a Collection Due Process hearing and it is decided on different questions.
What happens after the 30 days if I do nothing?
The IRS terminates the agreement and the account returns to collection. A levy on wages or a bank account still requires a final notice with Collection Due Process rights if you have not already received one.