Explanation of IRS Letters 2604C - Letter LP 59

Letter 2604C: Pre-assessed Installment Agreement

What this IRS Letter Tells You

This letter was sent to inform you that the IRS has accepted your request to pay your IRS tax debt in installments. You should also clearly see the specific dollar amount to pay each month, when your payment is due, and the address that your payments should be mailed to.

The IRS also charges a fee to establish an installment agreement with each taxpayer, and the dollar amount for your agreement should be given. The amount varies depending on the type of agreement that is established. The letter also provides instructions on how to apply for the Low Income Fee Reduction, for those who qualify.

How to Proceed with Your IRS Agreement

If You Agree with the IRS Assessment

If you agree with the IRS assessment of your tax debt, you should follow the instructions of the letter and make each payment on time. The letter tells you what your payment due date is, and you should mail your payment to the IRS no later than 5 days prior to the due date. Be careful to include all of the information the IRS asks for on your check so that they correctly apply the payment to your tax account, and not another taxpayer's! If you fail to make your payments the IRS can begin enforcement action by placing a levy on your bank account or wages or file a lien on personal property.

If You Do Not Agree with the IRS Assessment

If you do not agree with what is reflected in your letter, you should call the IRS or contact a tax professional to determine what your options are. A tax representative can legally act on your behalf before the IRS, including all negotiations, audits, appeals, and processing all of the necessary paperwork to ensure your tax problem is resolved quickly, accurately, and in your best interest.

Letter 2761C: Request for Combat Zone Service Dates

What this IRS Letter is Requesting

The IRS sent this letter to you because they need to know your combat zone service dates. This information will be used to ensure that the IRS provides you with the special provisions and protection of the combat zone deferment.

What You Need to Do

As is the case in most instances of receiving an IRS letter, it is in your best interest to take action immediately. You should provide the IRS with your entry and exit dates in and out of the Combat Zone based on your military orders.

The letter will let you know when and where the information needs to be returned. If you do not provide the IRS with these dates, you will not receive the penalty and interest reductions that servicemen and women are entitled to under the Soldiers and Sailors Relief Act. Please take advantage of this tax break the IRS offers the armed forces, and thank you for your service to our country.

Letter 2789C: Taxpayer Response to Reminder of Balance Due

Why You Received this IRS Letter

This is a generic, annual letter that the IRS sends out to every taxpayer that still has a tax balance. The letter is a reminder required by law. It explains that penalty and interest continues to accrue on your tax account until you pay your tax balance in full.

How to Resolve this Tax Problem

This is a reminder you should not take lightly. You can stop the interest and penalties by paying the balance due in the letter as soon as possible. The letter provides you the full pay amount to a specified date. Failing to make your payments will cause your account to default which could result in levy, lien actions and additional fees. The IRS will eventually collect your outstanding taxes one way or another.

If you feel helpless because you can't pay your tax debt, there are options available to you. Call a tax professional or the IRS directly to begin the conversation of what these options are and how you can use them to solve your tax problem. You may qualify for an offer in compromise, an installment agreement, or even be able to appeal the tax balance the IRS states that you owe. The solution is out there, but you must take the first step to begin the process of addressing your tax balance with the IRS.

Letter 2822C: VRU Acceptance of Proposal to Pay, and Letter 2823C: VRU Monthly Payment Plan Confirmation

What these IRS Letters Mean

Letter 2822C has to do with a proposal to pay that you made through the IRS's voice activated system. Good news: this letter is informing you that the IRS has accepted your proposal and that you can go ahead and make the payment you or your tax representative negotiated.

Letter 2823C is an acknowledgement of the Installment Agreement Plan you established on the IRS's voice activated system. Just like the letter detailed above, you can now proceed with your agreement with the IRS and start making your first payments as detailed in your letter.

How to Close Out your Tax Debt

All that's left is for you to pay the balance due as agreed to in the voice activated system. Both letters provide you the full amount and the due date based on your request. Letter 2823C also details the amount of your first payment of your installment agreement. Do not think that an acceptance of your proposal means you can take your time to pay the IRS. If you do not pay the balance you owe by the due date listed in your letter, the IRS can proceed with enforcement action and may file a levy on your wages or bank account or file a lien on your personal property.

Letter 2840C: CC IAPND Installment Agreement Confirmation

Why You Received this IRS Letter

This letter confirms that the IRS has received and accepts the installment agreement request you made when you filed a balance due return. In addition, it states the payment due date, the payment amount, and the fees charged for paying monthly. You can also find an explanation of how to apply for the Low Income Fee Reduction, for those who qualify.

What to Do Next

Your letter outlines the due date for your first payment, so you need to make your first installment payment by that date. After that, be sure to make your monthly payments by the due date contained in the letter. Failing to make timely installment payments will cause the account to default which could result in levy, lien actions and additional fees. You may want to speak with a tax professional to help you set up an automatic electronic payment plan with the IRS, or for tax help in negotiating with the IRS on your behalf if you find yourself unable to pay your monthly payments as time goes on.

Letter 3030C: Balance Due Explained: Tax/Interest Not Paid

Why You Received this IRS Letter

This is a balance statement from on IRS concerning your outstanding tax debt. The letter provides you with an explanation of the tax, penalty and interest still due on your tax account.

How to Act On this Information

If you agree with the information provided in the letter, you should pay the balance due as soon as possible. The letter provides you the amount you should pay by the specified date.

There may be complications, however, that make paying off your tax debt difficult. One of these could be that you do not agree with the amount the IRS claims you owe. In this situation, you should contact a tax professional or the IRS directly to begin the appeals process. You should have all of your relevant records and statements on hand, because you will need to verify your claim for an adjustment.

Another common tax problem is that you cannot pay the amount in full that the IRS is demanding. Depending on your financial situation, you may have options available to reduce your tax balance or delay the timing of your payments. A tax professional can detail your options to you and then act on your behalf before the IRS to resolve your tax problem. The key is to take action quickly to stop the penalties and to find a solution. If you do not make arrangements to pay the balance you owe, the IRS can proceed with enforcement action and may file a levy on your wages or bank account or file a lien on your personal property.

Letter 3127C: Revision to Installment Agreement

What this IRS Letter Means

This letter is confirming your request to make a change to your current installment agreement with the IRS. This does not mean that the IRS has accepted your proposed changes, but rather just that they have received and processed you request. Depending on what you requested, the change can be your payment amount, payment due date or adding an additional liability to the agreement. The letter also explains the necessary fees charged for the change you have requested.

How to Resolve this Tax Problem

You need to follow the instructions in the letter and make the change by the due date provided. There are instructions provided on how to respond to the IRS and officially accept the changes and additional fees as detailed in your letter.

In addition, the letter tells you when the change will go into effect, which is an important detail you should note. You still have the option not to accept the change. If you don't take any action now, you must continue to make your installment payments as the letter directs.

Letter 3217C: Installment Agreement Accepted: Terms Explained

What this IRS Letter is Telling You

This letter is telling you that the IRS has accepted your request to pay what you owe in installments. You should be sure to note the specific dollar amount to pay each month and when your payment is due.

There are other important pieces of information you will need to be aware of. The letter provides the address that your payments should be mailed to, as well as the dollar amount for the fee the IRS charges to establish an agreement. The amount varies depending on the type of agreement that you established. You may want to speak with the IRS or a tax professional to get details on how your payments should be submitted, because you may have the option to set up an automatic electronic payment from your checking account for easy bill paying. Finally, the letter provides instructions on how to apply for the Low Income Fee Reduction, for those who qualify.

What You Should Do

You should mail your first payment to the IRS no later than 5 days prior to the due date. Be sure to include the items the IRS has asked for in the letter on your check so it can be correctly identified and applied to your account. The letter is usually mailed 4 to 6 weeks before your first payment is due, so you should have plenty of time.

If you fail to make your payments the IRS can begin enforcement action by placing a levy on your bank account or wages or file a lien on personal property. If you are unable to make your monthly payment, you should contact the IRS or a tax professional as soon as possible. Expeditious contact prior to your payment due date may temporarily stop enforcement actions, and getting professional tax help can ensure your situation is handled promptly and in your best interest.

Letter 3228 (LT 39): Reminder Notice

Why You Received this IRS Notice

You received this notice from the IRS because by law they are required to send out a reminder notice informing you that you owe overdue tax.

How to Resolve this Tax Problem

There are many different ways you could precede depending on your situation. Here we will outline several of the more common situations. If this notice came as a surprise, the first thing you should do is compare what the IRS says you owe against your old tax returns and financial records. If you do not have accurate records or are unsure how to challenge the IRS's assessment, calling a tax professional may be beneficial to allow you to fully understand your options and to ensure your tax issue is handled correctly and promptly.

If you are able to pay the amount owed and agree with the total, send the IRS your full payment as outlined in the letter. However, if you are unable to full pay or believe that the overdue tax is incorrect, call the IRS or seek tax representation to get the tax help you need to resolve your account. You must act quickly, because to avoid enforcement action you or your representative must contact the IRS within 10 days of the date on the letter.

If you don't take action, enforced collection action may be taken to collect the amount you owe, including the filing of a Notice of Federal Tax Lien, or garnishment of your wages and/or bank accounts. A lien is a public notice to your creditors that the government has a right to your interests in your current assets and assets you acquire after the lien is filed; it can affect your ability to obtain credit.

If you are already working with the IRS to resolve your tax balance, no action is required. You should contact the IRS if you have unanswered questions about the overdue taxes or tried to contact them over 30 days ago and have not received a response. If you have already paid or arranged for an installment agreement, you should still call the IRS at the number printed at the top of the notice to make sure your account reflects this.

Letter 4903 (LT 26): The IRS has no Record of Receiving Your Tax Returns

Here's the Tax Situation You're In

Simply put, the IRS wants to know what's going on. They do not have a record of receiving your federal income tax returns for the years indicated in the letter and you have not responded to previous requests to file the returns.

How to Resolve this Tax Problem

You need to get current with the IRS as soon as possible. The best thing to do is to file your past returns if you can. If you can't do this, you can begin by contacting the IRS or a tax professional to discuss the matter and seek the tax help you need. If you are a wage earner, the IRS can usually provide you with your income and withholding information if you do not have the necessary records to complete your returns.

If you don't file your tax return(s) in time, the IRS may file the return(s) for you. If this occurs, the tax liability will probably be higher than a return completed and filed by you or your tax representative because the IRS must use Filing Status Single with one exemption. Usually voluntarily filed returns reflect a lower net tax and/or a higher refund amount than a return prepared and filed on your behalf by the IRS.

Since you already received this letter, you don't have much time. The IRS asks you to contact them as soon as possible, but no later than 10 days after the date on the letter. You need to do this even if you plan to file you tax returns. If you have already filed the requested return(s), you should still call the IRS at the number printed at the top of the notice to make sure your account reflects this. Sometimes the IRS needs you to re-submit with an original signature if they lost your tax return.

Letter LP 47: Address Information Request

Why You Got this IRS Letter and What to Do Next

No need for alarm; this IRS letter is not bad news for you. The IRS is trying to locate the person identified in the letter. They are asking that you provide the new address for this person, and if the address is a post office, to please furnish the street address as recorded on the box holder's application form. Sounds like it could be a lot of work, so the IRS just asks that you respond at your earliest convenience. To comply with the IRS's request, complete and return the letter with any available information in the return envelope provided.

Letter LP 59: Contact the IRS about a Taxpayer Levy

Why You Received this IRS Letter

This letter has to do with a Federal Tax Levy. The IRS previously sent a notice of levy to you to collect money from the taxpayer named in the letter, but they have received no response.

How to Fix this Tax Issue

If you previously responded, you still must complete the information again and mail it to the IRS in the enclosed envelope. Keep in mind that you are legally responsible for responding to the levy and must send the IRS the amount you owe the taxpayer(s). This amount is not to exceed the amount on the levy. Failure to pay this debt could result in you being personally liable to the IRS for the amount you owe the taxpayer. A penalty of up to 50% of the tax owed may also be imposed.

As you can see, this is a serious matter and requires your immediate action. You may also want to speak with a tax professional to provide the tax help you need to guide you through this situation. You do have some options available and there are ways to fight this action if you feel it is unfair. You can also choose to respond to the IRS directly for additional assistance or to let them know that you do not owe funds to this taxpayer. You can do this by calling them by phone to resolve any concerns or outstanding issues related to the levy you received previously.