The LTR 148C confirms the IRS accepted your installment agreement. It outlines the terms: monthly payment amount, due date, payment method, and the tax periods covered. This letter is your contract with the IRS. Keep it in a safe place.
Review the Terms
Compare the terms on the LTR 148C to what you agreed to. Verify the monthly payment amount matches your proposal. Confirm the due date works with your pay schedule. Check that the correct tax periods are included. If anything is wrong, call the IRS immediately to correct it before the first payment is due.
Compliance Requirements
Your installment agreement requires ongoing compliance. You must make every payment on time and in full, file all future tax returns by the due date, pay all future taxes on time (no new balances), and maintain adequate withholding or estimated tax payments. Violate any of these and the IRS can default the agreement.
What the Agreement Does for You
While the agreement is active, the IRS generally won't levy your assets. The failure-to-pay penalty is reduced from 0.5% to 0.25% per month. If you have a Direct Debit Installment Agreement, you may be able to get a filed lien withdrawn. The agreement provides predictability and protection while you pay down the balance.
Changes to the Agreement
If your financial situation changes, you can request a modification. If you can pay more, increasing your payment shortens the payoff period and reduces total interest. If you can't afford the current payment, request a reduction before you miss a payment. Proactive modification beats reactive default every time.
If you have questions about your installment agreement terms, call us at (813) 229-7100.