The Letter 2273C is sent by the IRS to notify taxpayers that their request for an installment agreement has been accepted. This letter explains the terms and conditions of the installment agreement, including the monthly payment amount, due dates, and any other obligations the taxpayer must meet to remain in good standing.
Key aspects of Letter 2273C:
- Acceptance of Installment Agreement: The letter confirms that the IRS has approved the taxpayer’s request for an installment agreement, allowing them to pay their tax debt over time in regular installments.
- Terms and Conditions: The letter will provide a detailed outline of the payment terms, including the amount of each monthly payment, the due date for each payment, and the total amount to be repaid. It may also include any penalties or interest that will continue to accrue during the repayment period.
- Obligations of the Taxpayer: Taxpayers are required to meet specific obligations to remain in good standing with the IRS, such as filing all required tax returns on time and making payments by the due date. The letter will explain these obligations clearly.
- Consequences of Default: If the taxpayer misses a payment or fails to meet other obligations, the IRS may terminate the installment agreement, requiring the full balance to be paid immediately. The letter will provide instructions on how to avoid defaulting on the agreement.
Letter 2273C is an essential document for taxpayers participating in an installment agreement, as it provides the official terms and ensures both parties understand the expectations.