Letter 2603C, Notice of Federal Tax Lien Will be Filed with Installment Agreement, tells you the IRS is approving your installment agreement but will also file a Notice of Federal Tax Lien. The agreement stops levy. It does not stop the lien. Once filed, the lien becomes a public record and attaches to your property, including property you acquire later.
Why the IRS Files a Lien With an Agreement
The IRS uses lien filings to protect the government's position while you pay over time, particularly on larger balances and agreements that are not streamlined. A lien gives the IRS priority against later creditors and buyers. You will receive Letter 3172 after the lien is filed, which carries its own 30-day Collection Due Process rights.
Ways to Avoid or Remove It
If your balance can be brought within the IRS's streamlined limits, a lien filing may not be required. A direct debit installment agreement can also open a path to lien withdrawal once you have made several consecutive payments and the balance is within IRS limits, using Form 12277. If the lien is blocking a refinance or sale, discharge or subordination may help.
Read the letter closely. It also explains the payment terms, which you need to follow exactly.
If you received Letter 2603C and want to keep a lien off your record, call us at (813) 229-7100.