Letter 2273C is good news. The IRS accepted your installment agreement and is explaining its terms. It is not an identity verification letter. The IRS also uses it to tell you an agreement has been reinstated, along with the terms going forward.

What This Letter Means

You have a payment plan. The letter states the terms, which can include the monthly amount, when payments are due, and any added conditions. Some conditions may also appear on Form 433-D if you signed one.

What to Check

  • The monthly payment amount and the due date.
  • The tax periods and balance covered.
  • Any special conditions written into the letter.

If anything doesn't match what you agreed to, call the number on the letter right away.

How to Keep the Agreement

  • Make every payment on time and for the full amount.
  • File all future returns on time.
  • Pay future taxes in full when due. For many people that means adjusting withholding or making estimated payments.
  • Expect future refunds to be applied to the balance.

Missing a payment or running up a new balance can put the agreement in default. If you know you can't make a payment, contact the IRS before it's due. Changes are easier before a default than after.

Penalties and Interest

An installment agreement doesn't stop interest. Penalties and interest continue to accrue on the unpaid balance until it is paid in full. Paying more than the minimum when you can shortens the plan and lowers the total cost.

Keep this letter with your records. It is your proof of the terms.

If you want help keeping your IRS payment plan on track, call us at (813) 229-7100.