The LTR 2518 is a payment reminder for your Offer in Compromise. If your offer was accepted with periodic payment terms (rather than a lump sum), you agreed to make monthly payments for a specified period. The LTR 2518 reminds you of your payment obligation and may provide a payment schedule.
Why Timely Payment Matters
Missing an OIC payment can default the entire offer. Default means the original tax debt is reinstated in full, minus any payments you've made. The IRS keeps your payments and then pursues you for the remaining original balance. Years of effort and thousands in professional fees are wasted.
Payment Schedule
Periodic payment offers typically require monthly payments over 6 to 24 months. Each payment must be made by the due date. The LTR 2518 confirms the amount and schedule. Set up automatic payments if possible to ensure you never miss a deadline.
The Five-Year Compliance Period
Remember that payments are just part of the deal. The five-year compliance period requires you to file all returns on time, pay all taxes on time, and not incur new balances. The LTR 2518 focuses on payments, but compliance with all terms is equally critical.
If you're having trouble making OIC payments, call us at (813) 229-7100 before you miss one. Modification is possible. Default is catastrophic.