IRS Letter 6459C: What It Is and How to Respond
If you recently had an Offer in Compromise accepted by the IRS — first of all, congratulations.
Settling your tax debt for less than you owe is a genuine accomplishment, and one that most taxpayers never manage on their own.
IRS Letter 6459C is what comes next.
It’s the letter from the IRS’s Monitoring Offer in Compromise (MOIC) department telling you that your accepted offer has been assigned to a tax examiner who will monitor your compliance with the offer’s terms — your payment terms and, for the next five years, your filing and payment compliance.
Here is a sample Letter 6459C.
In other words: you’ve won the settlement, and now you’re in the probation period.
In this article, I’ll walk you through the current Letter 6459C part by part and explain exactly what you need to do — and keep doing — to make sure your hard-won offer doesn’t unravel.
Key Takeaways
- IRS Letter 6459C means your accepted Offer in Compromise has been assigned to the Monitoring Offer in Compromise (MOIC) department, with a named tax examiner monitoring your compliance.
- The letter restates your offer payment terms — the amounts and deadlines you agreed to on Form 656 — and tells you where to send your payments.
- Under Section 7(1) of Form 656, your account will be monitored for five years from acceptance for filing and payment compliance.
- You must promptly notify the IRS of any change in your address or marital status while your offer is being monitored.
- Falling out of compliance — missing an offer payment or failing to file and pay on time during the five-year period — can default your offer and bring the original tax debt back.
Table of Contents
IRS Letter 6459C At a Glance
| Question | Answer |
|---|---|
| What is it? | Notification that your accepted Offer in Compromise is now being monitored by the IRS’s MOIC department |
| Is it bad news? | No — it’s a routine step after every accepted offer. But it comes with obligations. |
| What does it restate? | Your offer payment terms, where to send payments, and your five-year compliance requirements |
| Do I need to respond? | Not unless something is wrong — but you must keep making your offer payments and stay tax-compliant |
| What’s at stake? | Defaulting on the terms can reinstate the full original tax debt, minus payments made |
IRS Letter 6459C Explained, Part by Part
Here is a full explanation of the Letter 6459C, part by part, based on a recent Letter 6459C.
Part 1: Letter Header
At the top of the letter, you’ll see it comes from the IRS’s MOIC unit — on our sample, P.O. Box 77 MOIC in Memphis, Tennessee — along with the letter date, the letter number (LTR 6459C), and internal reference codes the IRS uses to track your case.
Part 2: Your Case Contact Information
Unlike most IRS notices, the Letter 6459C gives you a named human being — the tax examiner assigned to your offer. Along with that examiner, the letter lists their:
- Employee identification number
- Direct contact number
- Contact hours
- Offer number
Keep this section handy — this examiner is your point of contact for anything related to your offer’s monitoring.
Part 3: Your Offer Is Assigned to MOIC
The letter opens by confirming that your accepted Offer in Compromise is now assigned to the Monitoring Offer in Compromise Department, and that the tax examiner named above has been designated to monitor the compliance provisions of your offer.
Translation: the IRS accepted your deal, and this is the department making sure both sides hold up their end of it.
Part 4: Your Payment Terms
Next, the letter restates the payment terms of your offer, exactly as structured on your Form 656. On our sample letter, the taxpayer made a lump sum cash offer of $2,992.00, paid $598.40 with the offer, and owes the remaining $2,393.60 within five months after acceptance.
Check this section carefully against your copy of Form 656. If the amounts or deadlines don’t match what you agreed to, call the examiner listed on the letter right away.
Part 5: Where To Send Your Payments
The IRS instructs you to make your check or money order payable to the United States Treasury, write your offer number on the payment, and send it to the IRS’s OIC unit — on our sample, ATTN: OIC, PO Box 219982, Kansas City, MO 64121.
That offer number detail matters: it’s what routes your payment to your offer rather than to your general tax account.
Part 6: The Five-Year Compliance Requirement
Here’s the part that too many taxpayers forget the moment their offer is accepted.
Per Section 7(1) of your Form 656, your account will be monitored for five years from the date of acceptance for filing and payment compliance — meaning you must file every required return on time and pay every tax bill on time for five years.
The letter also notes that any tax refund due to you during this period may require an eight-week processing time.
The letter also instructs you to promptly notify the IRS of any changes in your address or marital status, so the MOIC unit can keep you informed about your offer’s status.
Part 7: Comply With Your Offer Terms — and How To Reach Your Examiner
Page 2 drives the point home: “It is important that you comply with the terms of your accepted Offer in Compromise agreement.”
If you have questions or concerns, you can call your assigned examiner during the stated contact hours, or write to the address at the top of the letter — including a copy of the letter, your telephone number, and the hours you can be reached.
And, as always: keep a copy of the letter for your records.
Part 8: Signature Block
The letter closes with the signature of the MOIC department manager — another reminder that a real unit, with real people, is now watching your offer.
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Call 866-8000-TAXWhen Does the IRS Send Letter 6459C?
The IRS sends Letter 6459C shortly after your Offer in Compromise is accepted, when your case is transferred from the offer examiner who evaluated your offer to the MOIC unit that monitors accepted offers.
If you’ve received it, your acceptance letter has typically arrived first — the 6459C is the “welcome to monitoring” follow-up.
What Should You Do After Receiving Letter 6459C?
Your offer is accepted — now protect it.
Here’s what I tell our own offer in compromise clients at this stage.
Step 1: Verify the Payment Terms Match Your Form 656
Compare the letter’s payment schedule to Section 7 of your Form 656. If anything is off — the offer amount, the amounts already paid, or the deadlines — call the examiner listed on the letter immediately, before a discrepancy turns into a “missed payment.”
Step 2: Make Every Remaining Offer Payment On Time
Pay exactly as scheduled, payable to the United States Treasury, with your offer number written on every payment, sent to the address in the letter.
I’d recommend paying at least a couple of weeks ahead of each deadline — mailed payments need time to arrive and post.
Step 3: Stay Squeaky-Clean for Five Years
This is where offers actually die.
For five years from acceptance, you must file every return by the deadline (including extensions) and pay every balance on time.
A single year of non-compliance can default your offer — and if that happens, the IRS can reinstate the original debt, minus the payments you made, wiping out everything you fought for.
Set reminders, make estimated tax payments if you’re self-employed, and treat every April like your offer depends on it — because it does.
Step 4: Keep the IRS Updated — and Keep the Letter
Notify the MOIC unit promptly if your address or marital status changes, and keep the Letter 6459C with your permanent records alongside your Form 656 and acceptance letter.
If you move and miss an IRS letter about your offer, “I didn’t get it” won’t undo a default.
And if anything about your offer’s monitoring goes sideways — a payment that didn’t post, a compliance letter you don’t understand, a refund that vanished — call us at 866-8000-TAX.
We negotiate and defend offers in compromise every day.
IRS Letter 6459C: Frequently Asked Questions
What is IRS Letter 6459C?
IRS Letter 6459C notifies you that your accepted Offer in Compromise has been assigned to the IRS’s Monitoring Offer in Compromise (MOIC) department. A named tax examiner is designated to monitor your compliance with the offer’s payment terms and the five-year filing and payment compliance requirement.
Is Letter 6459C bad news?
No — it’s a routine step that follows every accepted Offer in Compromise. But it’s an important reminder that your settlement comes with conditions: you must complete your offer payments and remain tax-compliant for five years, or your offer can default.
Do I need to respond to Letter 6459C?
Not unless something is wrong. If the payment terms don’t match your Form 656, or you have questions, contact the tax examiner listed on the letter. Otherwise, keep making your offer payments as scheduled and keep a copy of the letter for your records.
What happens if I miss an offer payment or fall out of compliance?
Your offer can default. If an Offer in Compromise defaults, the IRS can reinstate the full original tax liability, less the payments you’ve made, plus penalties and interest — undoing your settlement. If you’re at risk of missing a payment, contact the MOIC examiner on your letter before the deadline.
Why will the IRS monitor me for five years?
Section 7(1) of Form 656 — the Offer in Compromise contract you signed — requires you to file all required returns and pay all taxes on time for five years from the date your offer is accepted. The MOIC department monitors this compliance. It’s part of the deal you made in exchange for settling your debt for less than you owed.
Will I still get my tax refunds while my offer is being monitored?
Generally yes, for tax years after your offer is accepted — though Letter 6459C notes that refunds during the monitoring period may require an eight-week processing time. Note that under the terms of most offers, the IRS keeps refunds for tax periods through the calendar year your offer is accepted.
“Our tax debt had grown to over $120,000 and had become a constant source of stress and worry. In a matter of days, they were able to reduce our tax liability to less than $15,000.”
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Author:
Logan Allec, CPA, Founder and Owner
Logan Allec has been serving taxpayers as a CPA for over 14 years. After leaving his role at a "Big 4" firm, he started Choice Tax Relief to help everyday Americans who have found themselves behind on their taxes. He also educates thousands of people daily about tax relief on his YouTube channel. In addition to his CPA license, Logan also has a Master's Degree in Taxation from the University of Southern California (USC). He lives with his wife and children in the Los Angeles area. Learn more about Logan here.
