Letter 4387: Request for Extension of Time to Pay Tax Due

The Letter 4387 is sent by the IRS to notify taxpayers of the status of their request for an extension of time to pay their tax debt. This letter will inform the taxpayer whether the extension request has been approved or denied and provide instructions on how to proceed.

Key aspects of Letter 4387:

• Approval or Denial of Extension: The letter will specify whether the IRS has granted the taxpayer more time to pay their tax debt or if the request has been denied. Approval means the taxpayer has more time to settle the debt without facing immediate collection actions.
• Payment Terms: If the extension is approved, the letter will outline the payment terms, including the new due date and any penalties or interest that will continue to accrue during the extension period. If denied, the letter will explain why and provide alternatives for resolving the debt.
• Next Steps: Taxpayers are provided with instructions on what to do next, whether the extension is approved or denied. This could include making payments by the new deadline, setting up an installment agreement, or submitting an offer in compromise.
• Consequences of Non-Payment: The letter explains the consequences of not paying the debt by the new deadline (if approved) or by the original due date (if denied). These consequences may include the IRS initiating collection actions like wage garnishments or levies.

Letter 4387 is a key communication for taxpayers seeking additional time to pay their tax debt, and it provides a clear path forward depending on the IRS’s decision.