The Letter 3217C is sent by the IRS to notify taxpayers that their request for a partial payment installment agreement has been approved. This type of agreement allows taxpayers to pay a portion of their total tax debt over time, rather than paying the full balance in one lump sum.
Key aspects of Letter 3217C:
- Approval of Installment Agreement: The letter confirms that the IRS has accepted the taxpayer’s request for a partial payment installment agreement. This means the taxpayer will make monthly payments based on their ability to pay, rather than paying the full debt upfront.
- Terms of the Agreement: The letter will provide detailed information about the terms of the agreement, including the amount of each monthly payment, the due date, and any other obligations the taxpayer must meet to remain in compliance with the agreement.
- Interest and Penalties: Even under a partial payment installment agreement, interest and penalties will continue to accrue on the unpaid balance. The letter will explain how these charges will affect the total amount owed over time.
- Consequences of Default: If the taxpayer fails to meet the terms of the agreement, the IRS may terminate the installment agreement and require the full balance to be paid immediately. The letter outlines the steps taxpayers should take to avoid defaulting on the agreement.
The Letter 3217C is a critical communication for taxpayers who have been approved for a partial payment installment agreement, providing the details they need to manage their tax debt effectively.