IRS Letter 4364C
Your Installment Agreement Has Been Approved
Your IRS payment plan is approved — your first payment is due soon.
Deadline
Make the first payment by the due date in the letter
Miss the first payment and the agreement may never activate. Review the payment due date and payment method immediately.
Important — act before this escalates.
What IRS Letter 4364C Means
Letter 4364C is the IRS's formal confirmation that your installment agreement request has been approved. This letter outlines the payment amount, due dates, and the terms under which the agreement can be defaulted. The IRS levy powers are suspended while the agreement is in good standing.
Approval of an installment agreement does not stop interest or the reduced failure-to-pay penalty from accruing. It does, however, stop active collection — no new levies, and existing liens will not be released until the balance is paid in full, but no new lien actions are initiated.
The conditions for keeping your agreement in good standing are clear: make every payment on time, file all future returns when due, pay any new tax balances when due, and provide updated financial information if the IRS requests it. Failing any of these triggers CP523.
What the IRS Can Do If You Don't Respond
- Keep levy action suspended while the agreement is in good standing
- Issue CP523 and terminate the agreement upon default
- Resume full collection including new levies upon termination
What You Should Do Right Now
- 1
Make your first payment immediately — do not wait until the last day
- 2
Set up automatic payments or calendar reminders for every payment due date
- 3
File all future tax returns on time — this is the most common cause of IA default
- 4
If your financial situation changes significantly, contact the IRS proactively to modify the agreement
- 5
Keep a copy of Letter 4364C and all payment confirmations as your records
Resolution Options Available to You
Frequently Asked Questions About IRS Letter 4364C
Does my approved installment agreement stop a tax lien?
The IRS will not file new liens while your agreement is in good standing, but a lien already filed is not released until the balance is paid in full. The lien follows the property until discharged or the balance is paid.
Can I pay more than the required amount to pay off faster?
Yes — you can make additional payments at any time. Paying extra reduces the balance faster and minimizes total interest paid. There is no prepayment penalty.
What happens if I can't make a payment?
Contact the IRS before you miss the payment — not after. You may be able to request a brief extension or modify the payment amount. Acting proactively is critical; a missed payment triggers the default process.
Will I get a payoff notice when I'm close to paying off?
The IRS does not automatically send a payoff letter as you approach zero. Request an IRS account transcript or call to confirm your current balance before your final payment.
Professional References
IRC: IRC §6159 — Agreements for Payment of Tax Liability in Installments
IRM: IRM 5.14.1 — Installment Agreement Processing
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