Letter 681C, Proposal to Pay Later Accepted, confirms that the IRS accepted your request for a short-term payment plan. You asked for extra time to pay the balance in full, and the IRS agreed. The letter shows the amount and the date the full payment is due.
How It Differs From an Installment Agreement
A short-term payment plan is not a monthly payment arrangement. It is a grace period, generally up to 180 days, to pay the whole balance. There is no setup fee. You can make partial payments along the way, but the full balance must be paid by the date in the letter.
The Costs Keep Running
Interest and the failure-to-pay penalty continue to accrue until the balance is paid. The amount on the letter may not be the payoff amount on the day you pay. Check your online account for the current balance before sending the final payment.
If You Cannot Make the Date
Contact the IRS before the date passes. A short-term plan can be converted into an installment agreement, but missing the deadline without a word can send the account back into the collection notice stream.
If you received Letter 681C and are not sure you can pay in time, call us at (813) 229-7100.