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The Letter 3228C is sent by the IRS to taxpayers who have applied for an offer in compromise (OIC) but need to provide additional information to complete the application. The offer in compromise program allows taxpayers to settle their tax debt for less than the full amount owed, but the IRS requires detailed financial information to determine eligibility.
Key points in Letter 3228C:
- Request for Documentation: The letter will specify the additional documentation the IRS needs to assess the taxpayer’s OIC application. This could include updated financial statements, proof of income, asset valuations, and liability documentation.
- Verification of Financial Details: The IRS uses this information to verify the taxpayer’s financial situation and determine whether they qualify for an offer in compromise. Providing accurate and complete documentation is crucial to getting the offer approved.
- Deadline for Submission: The letter will include a deadline by which the taxpayer must submit the requested information. Failure to provide the documentation by the deadline could result in the denial of the OIC application.
- Next Steps: Once the IRS receives the additional information, they will continue reviewing the OIC application and make a decision on whether to accept or reject the offer.
Letter 3228C is an important step in the offer in compromise process, and taxpayers should provide the requested information promptly to avoid delays or rejection of their offer.