Letter 1962C is a general letter that usually explains that you are paying the IRS with a direct debit from your bank account. This is beneficial because after 3 months of paying this way, you can request that the IRS lift any liens against you. See Form 12277.
But, they might also send Letter 2603C accepting the payment proposal but informing you that they will file a Federal Tax Lien.
Response to Letter 1962C
As you continue making payments, call the IRS every 6 months at 1-800-829-1040 & request your Account Transcripts. This is so you can keep track of the balances and payments. You can also verify that the IRS records are correct.
As explained in the Prep Steps, you might consider making a Penalty Abatement request, if the circumstances are good.
Also, after two years from the date of assessment most income taxes are dischargeable in bankruptcy. Therefore, bankruptcy & an Offer must be explored simultaneously. An Offer-in-Compromise is more likely to be accepted since the IRS knows that you could discharge the tax in bankruptcy if necessary.
Or, you can simply continue making payments or try to get the payments lowered.
For additional forms, instructions & guidance please see the Prep Steps.