IRS Letter 2789C Notice: What Is It and How Should You Respond?
Summary:
Receiving IRS Letter 2789C can be stressful, especially when it addresses an outstanding balance and mentions penalties and interest. This notice serves as an annual reminder of your unpaid balance to the IRS. It informs you that the IRS will continue to assess penalties and interest until the balance is fully settled. In this article, we will break down IRS Letter 2789C, explain what it means, and guide you on how to respond effectively. By understanding and following the recommended steps, you can minimize financial impact and ensure compliance.
Receiving a letter from the IRS is often unsettling, and IRS Letter 2789C is no exception. This official notice is an annual reminder required by law, notifying you about the unpaid balance you owe the IRS. While it may seem intimidating, it’s essential to recognize that the letter is primarily informational. It alerts you to the continued accumulation of penalties and interest on your outstanding balance until the debt is fully paid. This guide will explain the details of IRS Letter 2789C and offer actionable steps for handling it effectively, helping you avoid further complications with your taxes.
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What is IRS Letter 2789C notice?
IRS Letter 2789C is an official notification sent to remind taxpayers that they have an outstanding balance with the IRS. This letter is a legal requirement that the IRS issues annually. It informs you that your tax debt remains unpaid and reminds you that penalties and interest will continue to accrue until the debt is fully resolved. By the time you receive IRS Letter 2789C, you would have likely received other notices, such as a bill for your unpaid taxes. This letter serves as a follow-up, reiterating that the IRS expects payment or arrangements for repayment.
Key components of IRS Letter 2789C
The IRS Letter 2789C contains several important elements. Here’s a breakdown of what you can expect:
- Outstanding balance: The letter will specify the total amount you owe, which includes the original tax debt as well as any penalties and interest that have accrued over time.
- Penalties and interest: It will explain that as long as the debt remains unpaid, penalties and interest will continue to accumulate. The longer the balance goes unpaid, the higher your overall debt will grow.
- Payment options: The letter provides information on how you can make payments, whether in full or through an installment agreement.
- IRS contact information: The letter includes a toll-free number for the IRS, allowing you to ask any questions or seek clarification about the balance, payment arrangements, or penalties.
Understanding why you received IRS Letter 2789C
The IRS sends Letter 2789C as part of its standard procedure to remind taxpayers of their outstanding balances. If you receive this letter, it means you still owe money to the IRS, and they are notifying you that penalties and interest will continue to accrue. The letter serves as an annual reminder required by law, helping to ensure that taxpayers are aware of their remaining obligations.
Common reasons for receiving IRS Letter 2789C
- Unpaid tax liability: You have not fully paid the taxes you owe, either from a previous year or as a result of adjustments to your current tax return.
- Accrued penalties and interest: The IRS adds penalties and interest to any unpaid tax, which increases the overall amount you owe.
- Inconsistent payment history: If you’ve started making payments but have missed some or failed to arrange a formal installment agreement, this letter serves as a reminder.
How do penalties and interest affect you?
When you owe the IRS, the initial tax debt is just the beginning. The IRS is authorized by law to add penalties and interest to your balance, which can significantly increase the amount you owe over time. Penalties can be applied for various reasons, such as failing to pay your taxes on time or failing to file your tax return by the deadline. Interest, on the other hand, is charged on both the unpaid tax and the penalties.
Understanding penalties
The IRS can apply several types of penalties, including:
- Failure to file: This penalty applies if you did not file your tax return by the due date. The penalty is usually 5% of the unpaid taxes for each month that the return is late, up to a maximum of 25%.
- Failure to pay: If you didn’t pay the full amount of tax you owe by the original due date, this penalty is usually 0.5% of the unpaid tax for each month the tax is unpaid.
- Failure to make estimated tax payments: If you’re self-employed or do not have taxes withheld through an employer, failing to make quarterly estimated tax payments can result in penalties.
Impact of interest
Interest compounds daily on any unpaid balance, including tax, penalties, and previous interest. The interest rate is determined by the federal short-term interest rate, which can change quarterly, plus 3%. This means the longer you wait to pay, the more your balance will grow.
Pro tip
Pay as much as you can, as soon as you can. Reducing your balance early can help you avoid accumulating additional penalties and interest.
How to respond to IRS Letter 2789C
Step-by-step guide to responding
Responding to IRS Letter 2789C promptly is critical to avoid further penalties and interest. Here’s a step-by-step guide to help you navigate the process:
- Review the notice carefully: Understand how much you owe and confirm the details listed in the letter match your own tax records.
- Make a payment: If possible, pay off the full balance to stop penalties and interest from accruing. The letter provides payment instructions, including online payment options.
- Set up a payment plan: If you cannot pay the full amount, consider contacting the IRS to establish an installment agreement. This allows you to make monthly payments toward your balance.
- Contact the IRS: If you have any questions or need clarification on the notice, use the toll-free number provided in the letter to speak with an IRS representative.
What to do if you cannot afford to pay the full amount
If you’re unable to pay the balance in full, don’t ignore the notice. The IRS offers several options to help you manage your tax debt:
- Installment agreements: This allows you to pay off your debt in manageable monthly payments. The IRS may also reduce penalties in some cases if you set up a payment plan.
- Offer in compromise: If you qualify, the IRS may agree to settle your debt for less than the full amount owed. This is typically available only in cases of severe financial hardship.
- Request a delay in collection: If you’re facing financial hardship, the IRS may delay collection activities. However, penalties and interest will still accrue during this period.
Potential consequences of ignoring IRS Letter 2789C
Failing to respond to IRS Letter 2789C can lead to serious consequences. Ignoring the notice won’t make the debt go away. In fact, failing to address your outstanding tax debt can lead to more severe penalties and actions by the IRS, including asset seizures and wage garnishment. Here are some of the potential consequences:
Increased penalties and interest
If you ignore the notice, penalties and interest will continue to accumulate, increasing the total amount you owe. The IRS adds these additional charges regularly, and they can quickly become overwhelming if left unchecked.
Asset seizure and wage garnishment
The IRS has the authority to take aggressive collection actions if your tax debt remains unpaid. These actions may include:
- Levying your assets: The IRS can seize your bank accounts, vehicles, and other assets to satisfy your tax debt.
- Garnishing your wages: The IRS can instruct your employer to withhold a portion of your paycheck to cover the unpaid taxes. This garnishment can continue until your tax debt is fully paid.
Impact on credit
Tax debt can negatively affect your credit score, especially if the IRS files a tax lien against your property. A tax lien becomes a public record, and lenders view it as a significant red flag, which can make securing loans or credit much more difficult. Although the IRS has reduced the number of tax liens filed in recent years, they are still a possibility for larger, unpaid debts that remain unresolved for extended periods.
Pro tip
If you’re unable to pay your full tax bill, consider contacting a tax professional to explore options like installment plans or an Offer in Compromise. A professional can also guide you on how to prevent more severe IRS actions, such as wage garnishment or asset seizure.
How to avoid future IRS notices
The best way to avoid receiving future notices from the IRS is to remain proactive with your tax obligations. Here are several steps you can take to stay ahead:
File and pay on time
Filing your taxes by the deadline each year and paying any amounts owed are the simplest ways to avoid tax debt. If you cannot pay the full amount, communicate with the IRS to arrange a payment plan before the due date. While filing for an extension can give you more time to submit your return, it does not extend the deadline for paying your tax bill.
Check for mistakes
Errors on your tax return can lead to an unexpected balance due. Double-check your filing for accuracy, especially in areas like income reporting, deductions, and credits. Using tax software or consulting a tax professional can reduce the risk of mistakes.
Adjust your withholding
If you frequently owe taxes at the end of the year, you may need to adjust your tax withholding. Consider speaking with your employer to increase the amount of tax taken out of each paycheck, or if you’re self-employed, make sure to pay estimated taxes quarterly.
Pro tip
Make use of the IRS’s withholding calculator or consult a tax professional to ensure you’re withholding the correct amount to avoid owing large sums at tax time.
How to remove penalties and interest
Although penalties and interest can add significantly to your tax debt, there are ways to reduce or remove them under certain circumstances.
Requesting penalty abatement
The IRS offers penalty abatement options to qualifying taxpayers. You may be able to request relief if you have a valid reason for failing to pay or file your taxes on time. Common reasons include:
- First-time penalty abatement: If you have a clean compliance history, the IRS may remove penalties for a first-time offense.
- Reasonable cause: If you can prove that your failure to pay was due to circumstances beyond your control—such as a serious illness, natural disaster, or other hardships—the IRS may reduce or remove penalties.
Paying off your balance
Once you pay off your tax debt in full, the IRS will stop adding penalties and interest to your account. If you cannot pay the full balance at once, paying as much as possible and arranging a payment plan can help slow the accumulation of additional charges.
Offer in compromise
In certain situations, you may be able to settle your tax debt for less than the full amount through an Offer in Compromise (OIC). This option is generally available if you can prove that paying the full amount would cause severe financial hardship. Keep in mind that OICs are difficult to qualify for and require substantial documentation to prove financial hardship.
Pro tip
If you’re applying for penalty abatement or an Offer in Compromise, it’s a good idea to seek the help of a tax professional. These processes require detailed knowledge and documentation to be successful.
Other support options for dealing with IRS Letter 2789C
Dealing with an IRS notice can feel overwhelming, but you don’t have to handle it alone. Here are some ways to get help:
Consult a tax professional
One of the best ways to navigate an IRS notice is to work with a tax professional. A certified tax preparer, enrolled agent, or tax attorney can guide you through the process, explain your options, and even negotiate with the IRS on your behalf.
Contact the IRS directly
The IRS provides taxpayer assistance through their website and toll-free number. If you need help understanding the notice, your payment options, or have any questions, don’t hesitate to reach out to the IRS directly.
Use the Taxpayer Advocate Service
If you’re having trouble resolving your issue with the IRS, the Taxpayer Advocate Service (TAS) can help. TAS is an independent organization within the IRS that offers free assistance to help taxpayers resolve issues causing financial hardship or difficulties.
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Frequently asked questions
What should I do if I receive IRS Letter 2789C but have already paid my tax debt?
If you receive IRS Letter 2789C and believe you have already paid your tax debt, it’s important to verify your payment records and compare them with the balance stated in the letter. Contact the IRS directly using the toll-free number provided in the letter to clarify any discrepancies. You may need to provide proof of payment, such as bank statements or IRS payment confirmations, to resolve the issue.
Can IRS penalties and interest be removed after I pay off my tax debt?
Paying off your tax debt in full stops the accumulation of additional penalties and interest, but it does not automatically remove previously assessed penalties. You can apply for penalty abatement if you meet certain qualifications, such as having a clean compliance history or demonstrating reasonable cause for late payment. Interest, however, generally cannot be removed, as it is required by law.
How long will a federal tax lien remain on my credit report?
If the IRS files a federal tax lien due to unpaid taxes, it can remain on your credit report for up to 10 years, or until the tax debt is fully paid. After you pay your tax debt, you can request the IRS to release the lien, which should occur within 30 days of payment. The lien will then be removed from your credit report, improving your credit score over time.
Can the IRS seize my property if I miss payments on my installment agreement?
If you miss payments on your installment agreement, the IRS may take enforcement actions such as placing a levy on your bank accounts, garnishing wages, or seizing property. However, the IRS typically provides notices and opportunities to resolve missed payments before taking these actions. If you’re unable to make a payment, it’s essential to contact the IRS immediately to discuss your options and potentially modify the agreement.
What options do I have if I can’t afford to pay my tax debt at all?
If you cannot afford to pay your tax debt, the IRS offers several alternatives, including setting up an installment agreement, requesting a delay in collection due to financial hardship, or applying for an Offer in Compromise to settle the debt for less than the full amount. You can also consult a tax professional to explore additional options and avoid severe consequences like wage garnishment or asset seizure.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- IRS Letter 2789C is an annual reminder notice informing taxpayers of their unpaid tax balance and notifying them that penalties and interest will continue to accrue until the balance is fully paid.
- Responding to the notice promptly can prevent further penalties and interest from piling up and helps you stay in good standing with the IRS.
- If you’re unable to pay the full balance, consider setting up a payment plan or negotiating an Offer in Compromise to settle your debt.
- Ignoring the letter can result in severe consequences, such as wage garnishment, asset seizure, and damage to your credit score.
- Working with a tax professional or using IRS resources like the Taxpayer Advocate Service can help you navigate the process and avoid complications.
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