Letter 3079C, Denial of Military Deferment, tells you the IRS denied your request to defer collection of a tax debt based on military service. The denial is issued under the signature of the Chief, Collection Operations.
What Military Deferment Requires
The Servicemembers Civil Relief Act allows deferral of collection of taxes owed before or during military service when the servicemember's ability to pay has been materially affected by that service. The word that matters is "materially." The IRS looks at whether military pay is substantially less than civilian income before entering service, or whether service otherwise impaired the ability to pay. A deferment request supported only by the fact of service will usually be denied.
What You Can Do
Read the reason for the denial. If the IRS lacked information about your pre-service income or your current financial situation, provide it. Servicemembers may also qualify for a 6% interest cap on certain pre-service tax debts under the SCRA, and for combat zone postponements of filing and payment deadlines, which are separate from deferment.
If deferment is not available, the standard collection alternatives still are: an installment agreement, currently not collectible status, or an offer in compromise.
If you received Letter 3079C, call us at (813) 229-7100. We are glad to help service members sort out IRS collection problems.