Letter 2271C: Notice of Intent to Default Installment Agreement

The Letter 2271C is sent by the IRS to notify taxpayers that their installment agreement is at risk of being defaulted due to non-compliance with the terms of the agreement. This letter serves as a warning, giving taxpayers the opportunity to take corrective action to avoid default and termination of the agreement.

Key details of Letter 2271C:

• Reason for Default: The letter will specify why the installment agreement is at risk of default. This could be due to missed payments, failure to file required tax returns, or accruing new tax debt.
• Steps to Avoid Default: Taxpayers are given instructions on how to bring the agreement back into good standing, such as making missed payments or resolving any outstanding tax issues.
• Consequences of Default: If the taxpayer does not take corrective action, the IRS may terminate the installment agreement, and the taxpayer will be required to pay the entire balance immediately. This can also lead to collection actions like levies or liens.
• Next Steps: The letter outlines what the taxpayer needs to do to prevent default, such as paying the past-due amount or contacting the IRS to discuss alternative options.

Letter 2271C is a crucial notice for taxpayers to resolve issues with their installment agreement and avoid further complications with their tax debt.