Letter 2731, Transfer of Claim for Damages, tells you that your administrative claim for damages under IRC Section 7433, 7432, or 7426(h) went to the wrong IRS office. The IRS is forwarding it to the office that handles it, generally the Advisory office for your area.
What to Do
Keep this letter with your proof of mailing for the original claim. The date your claim is treated as filed matters for two reasons. First, the IRS generally gets time to act on a claim before you can sue, six months for most damages claims and 30 days for lien release claims under Section 7432, unless you are close to the end of the limitation period. Second, the suit itself must be filed within two years of when you could reasonably have discovered the violation.
Do not assume the transfer pauses the two-year limit. Calendar the outside date for filing suit based on when the violation occurred, and plan as if the transfer bought you nothing.
Next Correspondence
After transfer, expect either Letter 2730 if the claim has defects, or a decision on Letter 2732 (denial) or Letter 2733 (allowance). If you hear nothing for months, follow up in writing.
If you received Letter 2731, call us at (813) 229-7100.