How to Know If You Received an IRS Installment Agreement Acceptance Letter
Learn how to confirm IRS installment agreement approval, understand key details in the acceptance letter, and know what steps to take if you don’t receive it.
Owing taxes to the IRS can be stressful, but an installment agreement allows you to pay over time instead of in a lump sum. If you’ve applied for one, knowing whether it has been approved is crucial to staying on top of payments and avoiding penalties.
Confirming Your Agreement Was Approved
Once the IRS processes your request, they notify you by mail. The Installment Agreement Acceptance Letter is the only official confirmation. The IRS does not approve agreements over the phone or via email.
The letter is sent to the mailing address on file, typically from your most recent tax return. If you’ve moved, update your address with the IRS using Form 8822 to ensure you receive correspondence. Address updates take time, so if you’ve relocated recently, contact the IRS to confirm where your letter was sent.
If you applied online through the IRS Online Payment Agreement tool, you might see a preliminary confirmation. However, this does not replace the official acceptance letter, which contains the finalized terms. If you submitted Form 9465 by mail, you must wait for the letter to arrive.
Key Contents of the Acceptance Letter
The letter outlines the terms of your payment plan, ensuring you understand your obligations. Key details include the payment amount, due dates, and IRS contact information.
Payment Amount
The letter specifies your required monthly payment, which includes your total tax debt plus accrued penalties and interest. The IRS calculates interest daily, and as of 2024, the interest rate on unpaid taxes is 8%, compounded daily. A failure-to-pay penalty of 0.5% per month applies until the balance is paid, dropping to 0.25% per month if you have an active installment agreement.
If your financial situation changes, you can request a payment adjustment by submitting Form 9465 or calling the IRS. Approval depends on your financial circumstances.
Due Dates
The letter states your monthly due date. Taxpayers can usually choose a date between the 1st and 28th of the month. If no preference was given, the IRS assigns a default date. Payments must be made on time to avoid default, which could lead to enforcement actions such as a tax lien or wage garnishment.
For balances over $25,000, the IRS often requires Direct Debit payments. If you miss a payment, the IRS may allow a brief grace period before considering the agreement in default, but repeated late payments can lead to termination.
Contact Information
The letter includes IRS contact details for questions about the installment agreement. If you need to update banking information, request a payment modification, or check your remaining balance, use these contacts. The letter may also reference the IRS Online Account portal, where you can view your payment history and outstanding balance.
If you receive a notice that contradicts the terms in your acceptance letter, contact the IRS promptly to resolve any discrepancies. Keep a copy of the letter for your records.
Timeframe to Expect Your Letter
The time it takes to receive your letter depends on how you applied and current IRS processing times. Taxpayers who apply online typically receive letters faster than those who mail Form 9465. In most cases, the letter arrives within 30 days of approval, though delays can occur during peak tax season or if the IRS has a backlog.
The IRS sends installment agreement correspondence via standard mail, so delivery times vary. Taxpayers in remote areas or outside the continental U.S. may experience longer wait times. If you opted for electronic communications, you may receive an email directing you to check your online account, but the official letter still arrives by mail.
Some applications take longer to review, especially if the requested payment is lower than what the IRS believes you can afford. In such cases, the IRS may request additional financial documentation before approval. Taxpayers with outstanding tax liens or prior defaulted agreements may also experience extended processing times.
Actions if You Don’t Receive Confirmation
If your letter hasn’t arrived within the expected timeframe, check whether the IRS has processed your request. One way is by reviewing your bank statements for the installment agreement setup fee—$31 for direct debit agreements and $130 for mailed payments. If this charge hasn’t appeared, your application may still be under review, or there could have been an issue with submission.
For those who filed using Form 9465, delays can occur if the IRS requires additional financial disclosures, particularly when requesting lower payments than the agency’s calculated minimum. In such cases, the IRS may send a separate notice requesting Form 433-F to assess financial hardship before approval.
If you haven’t received any correspondence, call the IRS Collections Department at 1-800-829-3903 to check your application’s status. Be prepared to verify your identity with your Social Security number, prior tax return details, and any reference numbers associated with your request.