CP523

A CP523 says an existing installment agreement has defaulted and the IRS intends to terminate it and, after that, levy. The agreement is not dead yet — the notice exists precisely to give a window to fix it, and reinstatement is often possible.

“You've defaulted on your payment plan. Make the payment before the termination date, or contact us to see about reinstating the agreement — a fee or full payment of any new liability may be required. If nothing happens, we terminate the plan and collection resumes, up to liens and levies. Serious delinquency can also affect a passport.”

The IRS's own page says to make contact as soon as possible and no later than 30 days. Acting inside that window usually means the plan is repaired or replaced; letting it lapse means starting over from a worse position, with appeal rights as the backstop.

• The notice, including the stated reason for the default
• Your payment history under the agreement
• Records of any new tax year that triggered the default — new balances are the most common cause
• Bank records if a payment was made but not credited

• Diagnosing why the plan defaulted and whether the IRS's reason is even correct
• Negotiating reinstatement or a restructured agreement before termination
• Filing an appeal of the termination when the facts support it
• Preventing the same default next year — usually a withholding or estimated-tax fix