USTaxPenaltySaverCP523
CriticalIntent to Terminate Installment Agreement - Default
Your installment agreement is in default and will be terminated unless you act immediately.
Response Deadline
30 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
CP523 indicates your installment agreement has defaulted and the IRS intends to terminate it. You have 30 days to bring payments current or 76 days to appeal. If terminated, the full balance becomes due and levy action may begin. According to IRS data, over 59% of installment agreements default within 3 years.
Why You May Have Received This
- 1Multiple missed payments
- 2Failed to file current year return
- 3Did not provide requested financial information
- 4New tax liability incurred
Required Actions
Make up missed payments within 30 days
Call IRS to discuss reinstatement
Request appeals if you believe default is in error
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- Agreement terminates 46 days after notice if no action
- Full balance becomes immediately due
- Federal Tax Lien may be filed
- Levy action may proceed
Tips & Best Practices
- 30-day deadline to cure default, 76 days to appeal
- Reinstatement fee applies ($89 or $130)
- Ensure all tax returns are filed - a common default reason
- Collection Appeals Program (CAP) may be available
Related Resources
Legal References
Ready to Take Action?
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