The LTR 177C communicates changes to your installment agreement terms. The IRS may have adjusted your monthly payment amount, changed your due date, added new tax periods to the agreement, or modified other terms. Review the changes carefully to ensure you can comply.
Why Terms Change
Common reasons for IA modifications include new tax liabilities added to the agreement (filing a return with a balance due), IRS review of your financial situation resulting in a payment adjustment, your request for a modification, and automatic adjustments based on the remaining balance and collection period.
Review and Respond
Compare the new terms to your current budget. If the new payment amount is affordable, adjust your automatic payment or payment schedule accordingly. If the new amount is more than you can afford, contact the IRS immediately to negotiate. Don't wait until you miss a payment — that triggers default proceedings.
If the modification wasn't something you requested and the new terms don't match any prior communication, call the number on the letter to verify the change is legitimate and understand the reason.
Update Your Records
Replace your old agreement terms with the LTR 177C in your files. The new terms supersede the prior agreement. Make sure any automatic payments are adjusted to match the new amount and date.
If your IA terms changed and you have concerns, call us at (813) 229-7100.