Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? LTR5977C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS accepted your offer to pay a specific amount toward your tax balance by a certain date.
- What should you do if you receive this notice?
- Pay as soon as possible: This helps you minimize penalties and interest, which will keep accruing until the balance is settled.
- Review penalty and interest details: The letter explains how penalties are calculated if you file or pay late. If you have any questions about specific penalty computations, contact the IRS using the number provided.
- Consider reasons for penalty abatement: If you believe you have a valid reason (such as reasonable cause) for late filing or payment, you can explore whether the penalties might be reduced or removed.
FAQs & Additional Information
- Can the penalty or interest rate change over time? Interest rates vary quarterly, and additional penalties can increase if you ignore notices such as a Notice of Intent to Levy.
- What if I already have an installment agreement? If you filed your return on time, the penalty may drop to 0.25% each month while you maintain an approved agreement.
What does it look like?
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
