Letter 2274C, Your Request For Installment Agreement Has Been Granted, confirms the IRS approved your payment plan. It is commonly used for simple payment plans set up through the Automated Collection System.
Check the Terms
Compare the monthly amount, the due date, and the tax periods with what you agreed to. If anything is wrong, call the number on the letter before the first payment is due. Make sure every tax period you owe is included. A period left out of the agreement can still be levied.
Keep the Agreement Alive
An installment agreement stays in place only if you keep its conditions. Make every payment on time. File every future return on time. Pay future taxes in full, which for self-employed taxpayers means making estimated payments. A new balance due is one of the most common reasons agreements default.
While the agreement is in effect, IRC Section 6331(k)(2) bars levy on the covered periods, and the failure-to-pay penalty rate is reduced for timely filed returns. Interest continues to accrue on the unpaid balance, so paying more than the minimum when you can saves money.
If you have questions about Letter 2274C, call us at (813) 229-7100.