Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? LTR1962C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS has approved or revised your Direct Debit Installment Agreement. This means payments toward your tax balance will be automatically withdrawn from your bank account. If you keep making on-time payments, you could potentially request that any IRS liens be lifted after three consecutive successful payments.
- What should you do if you receive this notice?
- Check the details: Make sure the withdrawal amount and bank information are accurate.
- Monitor your account: Verify monthly debits, and if an issue arises (e.g., the withdrawal fails), the IRS may send Letter 1961C, requiring you to mail payments.
- Keep track of your balance: Call the IRS every six months at 1-800-829-1040 to request Account Transcripts and confirm your records match theirs.
FAQs & Additional Information
- How does the Direct Debit Installment Agreement help with liens? After three consecutive months of successful direct debit payments, you can request lien withdrawal using Form 12277.
- What if the IRS also files a Federal Tax Lien? They may send Letter 2603C informing you of the lien, even though your agreement was accepted.
- Will my agreement default if a payment fails? Yes. If your automatic payment bounces or is canceled, the IRS might require checks by mail instead, and missed payments can cause the agreement to default.
- Can I modify my monthly payment amount later? You may request a revised Direct Debit Installment Agreement if your financial situation changes, but you’ll need IRS approval.
- Where can I learn more? Call the IRS or consult a tax professional to explore these options and verify your account status regularly.
What does it look like?
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
