Installment agreement default
Got an IRS CP523Notice? Here's What It Means
Deadline & urgency
CP523 usually gives you a short window to fix the default before termination. Act before the agreement is voided.
What this notice means
CP523 means your installment agreement may be terminated because of a missed payment, new balance, unfiled return, or other default reason listed on the notice.
If the agreement ends, the IRS can resume full collection activity on your balance.
Why did I get this?
You broke a term of your payment plan—often a missed or short payment, or compliance issues like failing to file future returns on time.
What should I do next?
Read the default reason and cure it if possible (pay the missed amount, file missing returns).
Call the IRS using the number on the notice to discuss reinstatement or a new agreement.
If cash flow is the issue, update the IRS on your financial situation.
Frequently asked questions
Can I reinstate my agreement?
Often yes if you address the default quickly and meet IRS rules; sometimes a new application is required.
Will my payments be higher?
A new agreement may use updated balance and financials, which can change the monthly amount.
What if the IRS is wrong about a missed payment?
Provide proof of payment (confirmation, bank record) and ask the IRS to correct the account.