How long do I have to respond to IRS Letter 1961C?

Call the IRS and arrange payments right away. Check the date and any response deadline printed on your notice, and follow the notice's instructions.

What should I do if I received IRS Letter 1961C?

Your direct debit installment agreement request was not granted. Make sure your payments are actually being made. If you are unsure, have a tax professional review the letter before you respond to the IRS.

IRS Letter 1961C: Direct Debit Installment Agreement Not Granted

Letter 1961C says your request to pay by direct debit was not granted. Do not assume payments are coming out of your account. Fix it now.

Numbers covered by this guide

Letter 1961C
Ltr 1961C
Letter 1961-C
1961-C
DDIA Not Granted

Check the identifier and follow the instructions on your own notice.

Published by the Law Offices of Darrin T. Mish, P.A.Updated October 13, 2026

Notice: Letter 1961C / Ltr 1961C / Letter 1961-C / 1961-C / DDIA Not Granted
Urgency: Urgent
Deadline: Call the IRS and arrange payments right away

Your first move

Your direct debit installment agreement request was not granted. Make sure your payments are actually being made.

Letter 1961C, Installment Agreement for Direct Debit Form 433-D Not Granted, tells you the IRS did not set up the automatic bank withdrawal you requested on Form 433-D. The letter states the reason. Common problems include an incorrect routing or account number, a missing signature, an account that does not allow electronic debits, or a request that did not meet the terms the IRS required.

The Danger

Many taxpayers sign Form 433-D, assume payments are being drafted, and stop paying attention. If the direct debit was never set up, no payments are being made, and a missed payment can put the installment agreement in default. Do not wait for the first debit to fail to find out.

What to Do

Read the reason in the letter. Call the number shown and correct the banking information, submit a new Form 433-D, or arrange another payment method in the meantime. Make the next payment yourself through IRS Direct Pay or your online account if you have to. Ask the IRS to confirm the status of the agreement and the next due date.

Direct debit agreements matter for more than convenience. They can make you eligible for lien withdrawal and reduced user fees in some situations. It is worth getting this fixed.

If you received Letter 1961C, call us at (813) 229-7100.

This letter has a clock on it. Don’t run it out alone.

Free consultation with Darrin T. Mish, a Tampa tax attorney licensed since 1993 and admitted to the U.S. Tax Court. Bring the letter.

Call (813) 229-7100

Request a consultation online