Letter 2275C: Installment Agreement Reinstatement Approved

The Letter 2275C is issued by the IRS to notify taxpayers that their installment agreement reinstatement request has been approved. This letter provides the details of the reinstated agreement, including the payment terms, deadlines, and obligations the taxpayer must meet to keep the agreement active.

Key elements of Letter 2275C:

• Reinstatement of Agreement: The letter confirms that the taxpayer’s request to reinstate a previously defaulted installment agreement has been approved. This allows the taxpayer to resume making monthly payments to satisfy their tax debt.
• Payment Terms: The letter outlines the updated payment terms, including the monthly payment amount, due dates, and any penalties or interest that continue to accrue. The IRS expects the taxpayer to comply with these terms to avoid future default.
• Consequences of Default: If the taxpayer misses payments or fails to comply with the other terms of the reinstated agreement, the IRS may terminate the agreement again and take more aggressive collection actions, such as levying assets or garnishing wages.
• Next Steps: Taxpayers are instructed to resume making payments as outlined in the letter and to ensure they meet all filing and payment requirements moving forward to keep the agreement in good standing.

Letter 2275C is crucial for taxpayers looking to maintain their installment agreement and avoid more severe collection actions from the IRS.