TAP 106-023

Letter 2645C Improvements

Issue Statement:

Internal Revenue Service (IRS) employees select and choose paragraphs to include when issuing Letter 2645-C, Interim Letter.  If the IRS employee does not choose the correct paragraphs when sending the letter to taxpayers, the taxpayer may not fully understand the situation which can lead to problems such as their defaulting on an installment agreement with the IRS.

Goal Statement:

Ensure that Letter 2645-C clearly communicates to taxpayers what needs to be done.

Proposal:

IRS employees issuing Letters 2645-C should use the following statement with regard to tax periods for which there is a balance owed:  "Penalty and interest will accrue until your issue is resolved.  You can reduce the amount of penalty and interest that may accrue by:

• Making a partial or full payment now.  If you choose to make a payment, please write the taxpayer identification number and tax period listed at the top of this letter on your check or money order or,
• Making a payment arrangement with the IRS If you do not have funds to pay now.