What This Letter Means

Letter 2840C confirms an installment agreement, which is a payment plan with the IRS. IRS procedures generate this letter when a payment plan is set up for a balance that has not been assessed on your account yet.

That happens when you agree to pay tax the IRS hasn't finished posting. Two common examples: a return the IRS has received but not finished processing, or a proposed adjustment you agreed to before it was assessed. The IRS can set up the payment plan before the tax posts to your account.

This letter is not an offer in compromise acceptance. It doesn't reduce what you owe. It confirms how you'll pay it.

What to Check

  • The monthly payment amount and the date each payment is due.
  • The tax period or periods the agreement covers.
  • The agreed balance shown on the letter.

If anything doesn't match what you agreed to, call the number on your letter right away.

What to Do

Make every payment on time. Interest and penalties keep running on the unpaid balance until it's paid in full, so paying more when you can reduces what you owe in the end.

Stay current on everything else, too. File future returns on time and pay future taxes when due. A missed payment or a new balance can put the agreement in default.

When the tax posts to your account, compare later IRS notices with this letter. Keep this letter with your records.

If You Can't Make a Payment

Call the IRS at the number on your letter before the payment is due, not after. It is easier to adjust an agreement than to reinstate one that has defaulted.

If you have a payment plan and need help keeping it on track, call us at (813) 229-7100.