The LT24 means your installment agreement has been terminated. The warnings (LT23, CP523) weren't heeded, and the IRS has ended the agreement. The full balance is now immediately collectible, and the IRS can levy your bank accounts, garnish your wages, and seize property without further notice (assuming prior CDP notices were sent).
Immediate Consequences
With the agreement terminated, the IRS regains full levy authority for the tax periods covered. Any collection holds that were in place because of the agreement are removed. The failure-to-pay penalty, which was reduced to 0.25% per month while the agreement was active, jumps back to 0.5% per month. And the IRS may file a Notice of Federal Tax Lien if one wasn't already in place.
Can You Reinstate
Reinstatement is possible but not automatic. You'll need to contact the IRS, cure the reason for default, and request reinstatement. The IRS may require a higher monthly payment, direct debit (mandatory automatic payment), updated financial information, and a reinstatement fee.
If the default was caused by a new balance due, the reinstated agreement will need to include the new balance, potentially increasing your monthly payment.
Alternative Resolution
A default can be an opportunity to reassess your resolution strategy. If the original agreement was unaffordable, defaulting and negotiating a lower payment through a new agreement or pursuing an offer in compromise might be a better long-term path. If your financial situation has deteriorated, Currently Not Collectible status might be appropriate.
Don't just let the default stand without pursuing a new resolution. An unresolved balance in active collection status is the worst position to be in.
If your installment agreement was terminated, call us at (813) 229-7100. We'll evaluate your options and get a new resolution in place.