Glossary

Letter 681C

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IRS Letter 681C is sent to taxpayers to confirm that the IRS has accepted a payment arrangement request made by the taxpayer, but it clarifies that the arrangement does not constitute a formal Installment Agreement. This letter outlines the terms under which the IRS has agreed to accept payments and provides instructions for making those payments.

Key points about Letter 681C:

The letter explains that while the payment arrangement has been accepted, the taxpayer may still need to enter into a formal Installment Agreement to resolve their tax debt.
It outlines the payment amount and due dates for each payment.
The taxpayer must continue making payments until a formal agreement is established or the debt is paid in full.

Taxpayers receiving this letter should follow the instructions closely to avoid defaulting on the payment arrangement and facing more aggressive IRS collection actions.

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