The LTR 2800C is generally good news. The IRS adjusted your account in your favor — typically a penalty abatement, an interest adjustment, or a correction that reduced your balance. The letter explains what was changed and the resulting impact on your account.
Common Adjustments
Penalty abatement through First-Time Abatement or reasonable cause, interest reductions resulting from penalty abatement (when penalties are removed, the interest on those penalties should also be reduced), corrections to misapplied payments, and account adjustments based on amended returns or audit reconsideration.
Verify the Adjustment
Check that the correct penalty or amount was removed. If you requested abatement of a $3,000 failure-to-file penalty and the LTR 2800C shows a $1,500 adjustment, only half was removed. Follow up on the remaining amount.
Also verify that associated interest was adjusted. When penalties are removed, the interest that accrued on those penalties should be reversed. If it wasn't, request an interest adjustment separately.
Keep This Letter
The LTR 2800C documents the favorable adjustment. Keep it permanently with your tax records. If the IRS ever reasserts the penalty or adjustment, this letter is your proof of the prior action.
If the adjustment doesn't match what you expected, call us at (813) 229-7100.