The LTR 354C is an explanatory letter. The IRS made an adjustment to your return or account and this letter explains what was changed and why. It may accompany a balance due notice or a refund adjustment, providing the detail behind the numbers.
What to Review
Compare every change described in the LTR 354C to your original return. The letter should identify which line items were adjusted, the reason for each adjustment, and the resulting tax impact. Cross-reference with your account transcript to see the transaction codes associated with the changes.
Common Adjustments
Income adjustments based on information returns the IRS received, credit adjustments due to eligibility or computation issues, penalty assessments for late filing or late payment, interest recalculations based on corrected dates, and corrections to withholding or estimated tax credits.
If You Disagree
Respond to the address on the letter with documentation supporting your original entries. If the adjustment was made under math error authority, you have 60 days to request abatement. If it resulted from an audit, check your prior correspondence for appeal deadlines.
If the adjustment explanation doesn't make sense, call us at (813) 229-7100.